How to Transform That Diamond in the Rough Into Your Dream Home

It’s nearly springtime again, and a new home-buying season is upon us.  Maybe you have been searching for your perfect home for a while.  You have likely stumbled across properties in your search with the following common description in the comments section of the listing sheet: “diamond in the rough”.  It’s a phrase that could have many meanings, but also holds a wealth of promise.  After all, everyone loves diamonds.  The idea it engenders is that you can buy this “rough” beauty for a good price, clean and polish it thoroughly, and end up with a precious treasure.

When you see the description, “a diamond in the rough,” know that often this is really just another way of saying, “needs a lot of work”.   It may mean the property has outdated kitchens and bathrooms and needs just simple remodeling.  It may also mean the floor plan is no longer practical and needs complete renovation to open up the layout, enlarge rooms, and add bathrooms.  If you are like me, then you especially like that these properties are available for a good discount, but you don’t have the cash necessary to complete the updates, minor remodeling, or complete renovation projects.

If what I am saying resonates with you, then I have a great loan program for you.  The FHA 203(k) Rehabilitation loan is a great way to purchase that “diamond in the rough” and give it a nice, thorough “polish”.  The FHA 203k loan is a great mortgage product in which you borrow both the purchase price and the funds needed for renovation in one loan with a great interest rate and a minimal required down payment.  Here are few of the highlights:

• No maximum dollar amount for repairs
• Any and all repairs are allowable as long as a portion of the original foundation remains in place
• Only a 3.5% minimum down payment is required
• Utilize the FHA 203(k) loan to rehabilitate any 1 to 4-unit property
• Gift funds are allowed
• Receive up to 6% of the purchase price as a seller credit to pay for your closing costs and prepaid fees
• Obtain financing even with “bruised” credit

It would be impossible for me to lay out all the great benefits of the FHA 203(k) rehabilitation loan in this short post.  But know that if you are looking to polish your diamond in the rough property, this may very well be the loan for you.  If you are interested in finding out more and getting pre-approved for this great loan, give me a call at 847-744-0168.  You can also visit my FHA 203k website at www.203kloanschicago.com.