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What is a 203k Rehab Loan?

The HUD 203k rehabilitation loan is a type of government-backed loan that allows homeowners and homebuyers to finance the purchase or renovation of a home with one single loan. The loan is insured by the Federal Housing Administration (FHA) and is designed to help individuals and families purchase or refinance a home that requires significant repairs or renovations.


The HUD 203k loan can be used to finance both the purchase of a property and the cost of necessary repairs or renovations. The loan amount is based on the value of the property after the renovations have been completed, and borrowers can borrow up to 110% of the home's projected value.


There are two types of 203k loans: the standard 203k and the limited 203k. The standard 203k loan is used for major renovations or repairs, while the limited 203k loan is used for minor repairs and cosmetic improvements.


To be eligible for a HUD 203k loan, the property must be at least one year old and the borrower must meet certain credit and income requirements. Borrowers must also work with an approved FHA.


CALL ELITE HOME INSPECTIONS, LLC TODAY

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ELITE HOME INSPECTIONS, LLC. - SERVING ALL OF MASSACHUSETTS


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