203k Loan Program

The new 203k loan program has been dubbed "the rehab loan". This loan was designed to make it easier for borrowers to obtain financing to purchase a home in need of rehabilitation or repair. In the past borrowers had to obtain multiple rounds of financing when rehabilitated a home. They would have to get financing for the rehabilitation and financing for the home. Once the rehabilitation or repair was completed than they would be able to obtain financing to cover the original loans. The rates on the original loans were never the most attractive. Now with the 203k loan program borrowers can obtain financing at more affordable terms when rehabilitating a new purchase. If interested in rehabilitating and purchasing a home, you should ask your mortgage professional for more details about this loan program.