Home Buying in Philadelphia>Question Details

H. Mendoza, Home Buyer in Philadelphia, PA

What is FHA loan 203k program ??is really worth it to apply?

Asked by H. Mendoza, Philadelphia, PA Fri Feb 21, 2014

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Hi H.Mendoza,

An FHA 203k program allows you to buy home and roll the renovations into the mortgage all-in-one loan. This option is great if you are looking to make your home the way you want it. You can basically do anything you want to the home from changing the layout to adding square footage to minor projects such as painting, carpeting and appliances all with a low interest rate and that is also tax deductible.

To me the reason I believe it is worth it to apply is because of the possibility of creating instant equity. I have had many clients who have gone to closing and had a home worth 10-20 even 50 thousand more than what they bought it for. Most people buy a home and the equity that they get is from the down payment they put in or they build it over time. Using a 203k I have seen hundreds of my clients create instant equity.

For me that is all the reason to apply and see if you can make that happen for yourself!

Good luck!

Jeff Onofrio
Director of Renovation Lending
NMLS# 38670
700 East Gate Drive, Suite 400
Mount Laurel, NJ 08054
Office:888-680-RENO Ext:4385
Ph: 856-505-6717
Cell:609-217-9409
Fx: 866-438-1351
JOnofrio@Annie-Mac.com
anniemac203klending.com
0 votes Thank Flag Link Sun Mar 16, 2014
FHA 203k program is a mortgage product that allows for the financing of renovations of the home. It is one loan so on a purchase it would include the financing of the purchase and on a refinance it would pay off your existing loan.

Feel free to reach out to me to learn more. Best of luck!

I've included a website detailing the product below.

Joseph S. Cordova
Trusted Mortgage Advisor
Partner
NMLS 146855
Evesham Mortgage, LLC
65 East Route 70, Plaza 70
Marlton, NJ 08053
856-985-9944 ext. 103 Tel
856-304-2381 Cell
206-333-0946 Fax
jcordova@eveshammortgage.com
http://www.joecordova.com
0 votes Thank Flag Link Sun Feb 23, 2014
It most certainly can be worth it depending on the property, location, and scope of repairs/renovations. You would want to be very careful not to over-improve for the neighborhood. It would be a good idea to talk to a mortgage professional who specializes in Rehab Loans, such as Doug Huhn. He works in Pennsylvania.
0 votes Thank Flag Link Fri Feb 21, 2014
It's a unique program that allows for the future home owner to make improvements that range from full rehabs to kitchen renovation. The loan is given based on the renovations and future appraisals.

As far as it being worth it, you need to decide on a property of interest and evaluate the return on investment of remodeling. However, it does help many customers add a personal touch to homes in desired locations or that do not fit all of their criteria.
0 votes Thank Flag Link Fri Feb 21, 2014
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