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KITCHEN Downsizing and FHA203K Loans- How they can help you go from where you are to where you want to be and keep the comforts of home- or at least the comforts you have grown accustomed to in your current home.

If you are at the point where downsizing makes sense; no longer need the 5 ,4, or 3 bedrooms or the rural setting and you want to simplify your life and still be close to everything town has to offer and maybe even have access to public transport in your area then downsizing to a more centrally located home may be just the solution.

A more centrally located home often means an older neighborhood and an older home.  Some you find are fully updated, to current owner’s tastes.  Some, on the other hand, may not have had an update in the last 10 or even 20 years…so at first sight you think- oh NO WAY!  But then:

Snow Light Feb 2013 Someone says the following term: FHA203k..and you start to see the light!

What is an FHA 203k Loan?

it is a loan designed specifically for homes that are either damaged or in need of rehabilitation- some cover cosmetic only- these are called ‘streamlined’ and some cover structural repairs (in Texas we all know this means ‘foundation’) these are called ‘regular’.

The down payment requirement is low and eligibility criteria are loose.

These are for owner-occupied homes only.

Single family are not the only ones that benefit- they also are for two-three- and even four family dwellings!

Here is a general list of qualified repairs:

  • Disability access
  • Heating, ventilation and air conditioning
  • Plumbing
  • Roofing and flooring
  • Energy conservation
  • Kitchen remodeling
  • New appliances
  • Room additions
  • Decks and patios
  • Bathroom remodeling
  • Room additions or second-story additions
  • New siding
  • Finishing an attic or basement
  • Site grading

Some items to note- NOT ALL LENDERS can do FHA 203k Loans.  and even more important to know NOT ALL FHA 203k LENDERS can do regular FHA203k Loans.  It is important to find a LENDER who specializes in this type of loan.

Another point is that the home price will be the price of the home + the cost of the repairs and because of the assumed risk the interest rates will be higher than on conventional or other FHA prodcuts, but with rates at the historically low levels- and the fact that you are downsizing the result should be a NET decrease in monthly utility bills and less gas in your move to a more central location as well as a lower housing payment- due to the smaller size/price and ability to benefit from selling your current primary home and put a substantial downpayment into your new home- resulting in a much lower mortgage obligation.

Downsizing can have long term benefits- and learning about how an FHA203k Loan can make this all possible while giving you the comforts of modern conveniences and updates can make the thought of purchasing an older home not so intimidating and overwhelming!!!

Happy House Hunting in North Texas. If you need a REALTOR® to list your current home, or are looking to buy or rent in the North Texas region- Give Dawn a call/text 860-575-5001 at Avery Properties/Avery Realty Group- where Sellers Enjoy 4% Listings and Buyers Enjoy Cash Back!! (ask me how…..)

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