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Advantages of FHA 203(k) Rehab Financing:

This government sponsored rehab program is a perfect for the purchase and rehab of of bank owned properties.
FHA 203(k) renovation financing provides homeowners a cost-effective way to live in their dream home. And it gives homebuyers the opportunity to purchase properties in need of improvement.
This is accomplished with a permanent mortgage that allows your client to purchase or refinance a home and then immediately begin the renovation - all with just one application and one closing.
The FHA 203(k) loan is a fully disbursed loan which allows a borrower to purchase or refinance a property and finance the cost of rehabilitation with one loan. Because it is fully disbursed at closing, the 203(k) loan can be insured by HUD as soon as the loan closes. The mortgage amount for these loans is based on the projected value of the property with the work completed, taking into account the cost of the renovation.

Advantages of FHA 203(k) Rehab Financing:
More money to work with. The amount your client can borrow is based on the expected increased value of your home, after improvements are made.
Less Strain on Your Budget. Your client can pay for the renovation gradually and affordably, over the loan term of the mortgage.
Less to Pay at Tax Time. Unlike other credit options, the interest your client pays on funds used for a renovation is tax deductible.
Less Hassle. Your client will have one loan to apply for, one set of fees, one closing to attend, and one monthly payment to make.
Faster Completion. Renovation work can begin immediately after closing
Low Monthly Payments. Improvement costs are spread out over the term of your loan
Simplicity. One application, one closing, one monthly payment
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