You find a great deal on a foreclosure but the carpeting is trashed, the owner stripped out the kitchen cabinets and copper pipes, and it looks like the windows have been blown out by a drive-by shooting...now what?
The FHA 203k Streamline Rehab program will allow you to purchase new carpets, windows, plumbing, and cabinets and roll the costs into the new mortgage. Most first time home buyers don't have the cash or don't want to use or have access to credit cards to fix up the property and the 203k loan can turn a handyman special into your dream home.
I wish I would have known about the FHA 203k loan when I bought my first house. My wife and I bought a charming Victorian which was 115 years old and it needed new siding, roofing, and windows and the cost was $25,000. We had to use credit cards and all our savings to pay for the repairs because we did not know about the 203k rehab loan.
The 203k Streamline Rehab loan is great for first time home buyers who want to buy a nice starter home and don't want to use their savings and credit cards to fix it up.