RealtyTrac launched its new Renovation Loan Center powered by loan specialist REbuildUSA to help buyers and homeowners take advantage of one of real estate’s best kept secrets: the Federal Housing Administration’s 203k renovation loan program.
Whether the consumer is buying a new home or refinancing an existing one, he or she will benefit from the power of the longstanding but underutilized FHA 203k loan.
The 203k program was established in 1978 to improve housing conditions and ownership opportunities. It provides hope for homebuyers who are looking to buy or refinance a fixer-upper and who require additional funds to make repairs.
Within the program, homeowners can also refinance their existing home and renovate it all with a new single loan — even if the homeowners have as little as 5% equity in the home.
Both homebuyers and homeowners can secure a 203k loan with as little as 3.5% down and for a loan amount that is up to 110% of the after-repair value of the home.
"Much of the nation’s housing inventory is in need of at least some revitalization, whether that be vacant foreclosures that have fallen into disrepair or non-distressed homes with deferred maintenance keeping the home off the market," said Jamie Moyle, CEO of RealtyTrac.
Find out more about the 203k loan here.