203(k) Loans: Helping Homeowners Realize A Property’s Potential

Are you purchasing or refinancing a property that needs more than $5000 in repairs? A 203(k) loan may be right for you!
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    How Does a 203(k) Loan Work?

    The US Department of Housing and Urban Development provides mortgages under Section 203(k) of the National Housing Act, which allows the Federal Housing Administration (FHA) to make insurance for rehabilitation and repair loans available. With a down payment of at least 3.5%, low- and moderate-income families can utilize the 203(k) program to make their dream home a reality.
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    Do 203(k) Loans Have Limitations?

    FHA requires that you use a minimum of $5000 towards repairs and improvements, and that they are completed within six months of the loan closing. Funds may not be used for luxury items, but minor cosmetic repairs may be permissible. Additionally, the total value of the property must fall within the FHA mortgage limit for the home’s geographic area. At DNJ Gateway Bank Mortgage, we’re happy to help you assess whether the property of interest is 203(k) eligible, and if such a loan is the right choice for you and your family.
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    Are There Any Fees Associated With a 203(k) Loan?

    Yes – there is a small plan review fee that is assessed prior to the appraisal of the property in order to have someone visit the site and ensure that the property is compliant with the requirements of the 203(k) program; this fee ranges from $100-$200 for a single unit property. Additionally, 203(k) loans require some form of monthly mortgage insurance, the cost of which is determined by the loan amount and term. All 203(k) loans also require an upfront mortgage insurance premium.

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Call DNJ Gateway Bank Mortgage to Learn More About 203(k) Loans

To discuss 203(k) loans with one of our knowledgeable loan officers, contact DNJ Mortgage today! We’ve earned the trust of homeowners in the Triangle, the Triad the Outer Banks, Western North Carolina, Virginia Beach, Rehoboth Beach, the Eastern Shore of Maryland, the Eastern Shore of Virginia, and more – Let us earn yours! DNJ also offers mortgages in Tennessee, South Carolina, Georgia, Texas, and Florida. Call today!