So, what’s the scoop on the 203k?
You get qualified for your 203k loan.
You find a home you want.
If it needs work no problem.
The purchase price and the repairs are rolled into one loan.
The home must appraise favorably when you are done.
It goes like this, lets say you find a house for $150,000, and it needs or you want $60,000 worth of work, fine. Then the home must appraise close to those numbers combined.
House $150,000, work $60,000 and it appraises at $175,000 when done, that’s a no go.
House $150,000, work $60,000 and it appraises at $225,000, then congratulations you just bought a $225,000 home for $210,000.
That’s the 203k!