Similar to other FHA loan products, down payment options run as low as 3.5%, and borrowers must pay both an annual mortgage insurance payment (MIP) and an upfront insurance premium (UFMIP).
The interest paid on the FHA 203k loan is tax deductible, so the buyer is able to purchase a home improve it, raise its market value – and all while receiving a tax deduction.
To obtain financing under the FHA 203k program, the borrower must meet certain standards for appraisal, documentation, timeliness, workmanship, and construction. For our experienced loan officers, the process is no more complicated than any “conventional loan”, and it offers an excellent opportunity for buyers to rehabilitate their property!