How’s this for a Catch 22?
You’ve found a great property. Perfect for your needs, and in just the right location. It could use some fixing up, but that’s OK because it brings down the price. Besides, you like the idea of customizing a home to make it truly yours.
The problem is that the bank won’t lend the money until the repairs are complete. And you can’t buy the house until you do the repairs.
Fortunately, there’s a loan program in place, backed by the Federal Housing Administration, meant to alleviate that very problem.
The FHA 203(k) is perfect for enterprising homebuyers who are willing to pay a lower price for houses that need some sprucing up or repair work, and willing to arrange for that work themselves. Depending on the type of 203(k) loans, they can be used to fund anything from