Fixer Uppers: The 203k Mortgage

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Purchasing a New Home? There is no need to be discouraged by Fixer Upper’s: The 203(k) Mortgage solution.

203(k) Kitchen before Renovation

So you have decided that your 2 bedroom, 1 bath cottage home isn’t going to cut it anymore. After all, its getting tight with you, your spouse, two kids, and Rufus your dog (or Crookshanks your cat). The stresses home searching can be daunting. Will you be able to find a home in a respectable area, with good schools, the space that you need, within the budget you have to stick to? These are just some of the thoughts that add to the stress of home buying.

Let’s say its a quite Sunday afternoon. While driving with your family to your favorite ice cream shop, a sign in a yard catches your eye. This home has everything. It’s in a great neighborhood for your kids. It’s only 10 minutes from the office. The yard needs some tender care, but definitely manageable. 5 bedrooms, 3 bathrooms, a garage, a family room – plenty of space for your growing family. Your realtor opens the front door. Disappointment is an understatement. There are water stains on the ceiling, and entire walls of sheetrock missing. There is an obvious leak under the kitchen faucet that has rotted out the cabinets, not to mention rotted window sills and brickmold. You think to yourself, “It could have been perfect.”

Here is the great news: IT STILL CAN BE!

203(k) Kitchen In-Progress

Enter the 203(k) solution-

There has been a mortgage program out for while, but has not been aptly utilized. This type of mortgage is called the 203k Mortgage. This type of mortgage allows you to not only purchase the home of your dreams, but also roll the remodeling, upgrades, or necessary repairs into your mortgage. There are two main types of 203(k)’s you should know about:

“Streamlined” 203(k)

I have found streamlined mean “less red tape.” It also limits the scope of your project to $35,000. We have found streamlined 203(k) loans used to make minor repairs and replace finishes, like flooring, scraping the popcorn texture off the ceilings, and adding cabinets to the kitchen.

203(k) Kitchen with Pendant Lights, Granite, and more

Regular 203(k)

If you are prepared to ‘HGTV’ your new home, the Regular 203(k) may be the solution for you. There are limits based on how much your home is worth after the remodeling and upgrades, but do not be discouraged: We have had clients that were eligible for $80,000 or more for their projects. Oh the possibilities…

203(k) Kitchen with new, custom built cabinets and flooring

The 203(k) mortgage is a great option to get your dream home, and your dream home configured the way that you want it. Ask your realtor or mortgage lender professional for more information about the 203(k) mortgage, then call Hazelwood Construction Company, Inc. to make your vision come into reality – We have experience you need to work with you, your realtor, and your mortgage lender professional to utilize the 203(k) to make your home dreams come true.