If you’re a first time buyer (or you haven’t owned a home in the past 3 years), and you’re going to be living in the property then the FHA’s 203k Program might be a great “low down payment” Fixer Financing Option For You. Watch the video below highlighting the FHA 203k “Fixer Upper” style loan.
Here’s how it works:
- Down payments are low, usually 3.5%
- You can get your down payment from an external source, (like family)
- You can have “less than perfect” credit.
- Great for Properties where major renovations make a property “Livable” again.
- “Streamlined 203k’s” are available for less complicated fixer uppers.
- Property must have 1-4 Units To Qualify.
- Only available to Owner Occupants (no investors)
- Prior to purchase you’ll coordinate with a contractor to come up with an Estimate of Repair costs.
- Repair funds will be placed in Escrow at closing.
- Funds are released according to a draw as phases of the project are completed.