Many people call Long Island home, but like every other place in the country, not every house on the market is move-in ready when you want to relocate. Older homes may be appealing and affordable but they can vary widely. Some need minor facelifts while others beg for complete makeovers. Home buyers may wonder if it’s worth the risk.
Though fixer-uppers have a tendency to scare off home buyers, purchasing this type of property has its advantages. For one thing, you can redesign the home however you want, adding your own personal flare as far as the local zoning laws allow. Typically these homes are significantly less expensive than their already remolded counterparts. Still, there are people who worry about putting money into a house that may end up exceeding their original budget.
But an FHA 203(k) rehab loan is a great option for those facing a situation like this.
It Kills Two Birds with One Stone
Thanks to the Federal Housing Administration, FHA 203(k) rehab loans provide home buyers the finances not just to purchase a home, but to renovate it. Depending on the type of loan you get—regular or streamlined—you can use that money to replace the roof or install modern appliances, for example. This way, you won’t have to worry about dipping into your personal savings in order to afford the renovation, which is especially comforting if you suddenly find out that some issues have to be addressed immediately.
You Don’t Have to Put Much Money Down
To qualify for an FHA 203(k) rehab loan, you need to know the FHA loan limits and meet the requirements. One of those conditions is being able to make, at the very least, a 3.5 percent down payment. This significantly low rate could help you avoid the possibility of becoming house poor by buying something that you can’t afford to maintain.
You Can Start Renovations Right Away
Some home buyers move into their fixer-upper and hold off on doing any rehabilitation until they have enough money saved up. Although certain updates aren’t always on a time constraint, like remodeling an outdated kitchen, trying to get settled while raising extra funds for a costly renovation can be stressful. You want to feel at home as soon as possible, so being able to make upgrades right when you move in is a definite advantage to getting an FHA 203(k) rehab loan. Why delay it if you don’t have to?
When choosing a mortgage, take a long, hard look at your own financial situation. Long Island FHA 203(k) rehab loans can help home buyers who aren’t afraid to purchase a vintage property that requires some TLC. As long as you meet the FHA requirements and are ready to take on a renovation project, this loan could turn your dream of owning a home into reality.
