WHAT IS A 203K LOAN IN NJ?
A 203K FHA loan is a loan that comes with a renovation feature. Rather than a standard loan, you can borrow money based on the future value of your property so that you can make improvements such as kitchen or bathroom renovations.
A 203K Loan offers a number of great benefits for homebuyers and can be the key to you getting the home you’ve always dreamed of.
- Your loan can be used to modernize and renovate your home
- You can combine your renovation costs with your first mortgage
- The loan only requires a 3.5% down payment making it a viable option for many homebuyers and homeowoners.
- You can use the loan to increase the value of your current home
A 203K loan is an ideal option if you are planning to renovate and sell on the property, to update your outdated home or purchasing a foreclosure. Only requiring 3.5% down,it is an attractive option for many homebuyers and can open up your options to consider different properties and ultimately lead to you getting the home of your dreams.
203K loans, on average range from $5,000 to $35,000 giving you enough cash to make a big impact on your property and transform it into a great new living space full of life for you and your family or the buyers you may sell it on to.
203K LOAN USES
THE 203K DIFFERENCE
A lot of homeowners spend a lot of their time looking at ideal homes on the internet, dreaming of owning a property like this. For many, this is out of reach but with a 203K loan, you can get a property that needs a little bit of work and transforms it into your personal vision and a home you love.
The 203K can pay for all your professional labor costs as well as things like plumbing, electricity and kitchen or bathroom remodels. This gives you the ability to walk into a property that might look dingy or unfinished to someone else but you can look past that seeing its full potential knowing your loan will pay for its transformation into exactly the home you have always wanted.
WHAT PROPERTIES ARE ELIGIBLE?
If you are looking for a fixer-upper and want to make sure you will qualify, or if you want to renovate the home you already have but aren’t sure if you can get a 203K loan check and see if you meet the below criteria:
- A 1-4 unit property that was completed at least a year ago
- A home that has been demolished as part of the rehab process
- If you have a home you are going to move onto foundations in the mortgaged property
- A property you want to convert from either a single family unit into a 2 to 4-family vice versa
THINGS YOU CAN DO WITH A 203K LOAN
Whole house fans
Patios, porches, decks
Attic to office
Repair a bathroom
Add a bathroom
Heat and air
Mini duct a.c.
Modify a bedroom
Add a Bedroom
Addition 2nd story
Addition going out
Move a house new site
Purchase / refinance
Whole house grouting
Your idea here!