About Jeff Onofrio
FHA 203k Renovation mortgages are my primary focus. Whether you are purchasing a home that needs rehab work or a current home owner who is looking to renovate their primary residence a 203k loan from AnnieMac Renovation Lending can help.
Right now there are millions of homes sitting on the market that with a little TLC would be everyone’s dream home- it’s just a matter of learning how to make those dreams a possibility.
At AnnieMac Renovation Lending we not only originate FHA 203k mortgages- we educate consumers, Realtors and contractors how to use the FHA 203k mortgage. We take the time to truly give everyone the knowledge of how to take a fixer upper and turn it into the American dream. Our experience and dedication to giving the best possible customer service is what truly separates us for the rest. Some companies talk about their experiences- we show you ours.
The Benefits of an FHA 203K Loan for Home Improvements in Massachusetts
Are you looking for a dream house in Springfield, Boston or one of the other many beautiful parts of Massachusetts? Maybe you've been looking for your ideal home for some time, and maybe you've seen lots of great properties that you love but they're just out of your price range. Or perhaps you've already seen a great house but you simply can't afford the huge down payment the bank wants before they'll give you a mortgage.
If this describes you, then have you ever considered applying for an FHA 203K loan?
The chances are you won't have heard about this type of loan, because until recently, they haven't been that common. However, due to market and property conditions the 203K loan is becoming more popular. There are many reasons for this.
What are FHA 203K Loans?
FHA 203K loans have been around for many years. They allow you to borrow enough money to buy a house, and also the amount needed to renovate it as part of the same loan. The 203k program is insured by FHA Federal Housing Administration. This means if you were to default on the loan at any time, the FHA would cover the lenders lost. So, because this reduces the potential risk to the bank or lender, they are able to offer low interest rates and request much smaller down payments.
Benefits of taking out a 203K Loan
The main benefit is the low cost of taking out the loan. The down payment required is only 3.5% which is much more affordable than the up to 20% that is normally required by banks. In addition, the funds for the down payment can be a gift. You can get the money from a relative for example, or even your employer.
The maximum you can borrow depends on what kind of house you want to buy, and where in Massachusetts it's located. For example, you can borrow around $300,000 to buy a single family house in Springfield. If, however, you wanted to buy a property in a different city, then your FHA 203K specialist would be able to give you all the information you need.
One of the other benefits of this loan is the renovation aspect. You can borrow an additional amount as part of the loan to fix up or totally renovate the house you're buying. This doesn't just mean fixing a roof or other structural repairs. It means you can include practically all the costs you would incur to renovate the house. Things like flooring, carpets, fixtures and fittings and wallpaper to name just a few.
Just imagine if you could find a run down foreclosure in a town you really like that was going for a really low price. You could arrange an FHA loan for renovations to buy the house and include everything you need to completely fix it up. If you did a good job you could dramatically increase the value. You could end up with a house worth much more than what you paid for it.
This is what happened to Mike Baxter who bought a dilapidated foreclosure property in Berkshire, Pittsfield. He took out a 203K loan for $180,000 and after complete renovation, the property is now worth over $220,000.
Mike said "I was a first time buyer and didn't have a lot of savings so I was looking for something cheap but still in a good location. I found a house I could afford but then I heard about the 203K program, so I got some advice from a specialist. I was going to take a normal mortgage but I'm so glad I didn't. By taking the 203K loan for home improvements out, I was able to make a smaller down payment rather than the 20% I was going to pay and I was able to borrow more to fix the house up. This means I've kept a lot of my savings. It's saved me loads of money and was much less stressful than I thought."
This type of home improvement loan has been around for years to help homeowners and now many are seeing how beneficial these 203K loans are and more and more people are taking them out.
You can find out more information about a 203K Loan in Massachusetts by contacting you local 203K specialist.
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