The FHA 203k rehab loan has been designed to meet the unique requirements of the lender. It is primarily a loan program that allows the borrowers to cover their renovation costs along with the cost of purchase under one program. There are a lot of myths encircling the 203K rehab loan, which has been around, for a couple of years. Let’s find out some of the truth behind these myths –
Myths About FHA 203K Rehab Loan
While FHA 203K rehab loans can be complicated, there have been many who have been talking about their ordeal while getting their documents fixed. However, over the past years, things have streamlined and if you have a good team to guide you, your paperwork can be smoothly done.
Time to Close the loan
This is one of the biggest myths, due to which people refrain from undergoing this process. The time may span around 40-60 days depending on the requirement.
The higher rate is to compensate the lender for taking a risk on other benefits which a 203k rehab loan offers. Moreover, you can apply for a lower rate in case of FHA Streamline Finance after completion of 6 payments.
Apprehensions About Borrowing Money for Renovation
We understand that there are lot of apprehensions revolving around why to renovate the house and pay for 30 long years for it. What most buyers tend to overlook is that fact that you get to borrow that amount of money, which is the future value of that home. This leaves room for a lot of equity.
Drew Mortgage Associates, a leading company in the field of mortgage loans, can help you to ease your process of the FHA 203K rehab loan, by assisting you in the documentation process. Though you may have heard many horror stories about this loan, it has undergone a sea wave of change, hence, there is no need to be reluctant about this loan. However, the process is not a cakewalk, hence hiring services of an expert is recommended.