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By Bob Rutledge

The FHA 203K Renovation loan allows buyers to purchase and renovate a property with one loan and one closing. With one loan, there is only one application, one set of fees, one closing and one monthly payment.

Improvements can include anything that adds value to the home, such as a room addition, new carpeting, appliances, landscaping, plumbing, roofing or a new kitchen. The loan can also be used for energy-efficiency improvements.

A 203K loan can create huge value for home shoppers looking to:

1. Buy a home in a neighborhood that they could not ordinarily afford by purchasing a fixer-upper or foreclosure.

2. Include all their upgrades and repairs in one loan and one closing.

3. Purchase a home with only 3.5 percent down payment on the total sales price plus the cost of repairs.

4. Streamline the process because closing occurs first, and then repairs are done after closing. You receive your commission and the seller receives their payoff sooner.

5. Replace anything from carpet, paint and appliances, to fixtures, windows and more, and include it in the financing.

6. Upgrade by adding additions and putting in landscaping. Add a garage or room, add another floor, or finish the basement!

7. Fix damaged homes – new roof, fire damage,termite removal and mold remediation, septic and/or wells.

8. Maximize a property’s potential. The loan is based on the after-improved value – what the house will be worth once the renovations are complete.

9. Customize the home to the buyer’s taste. Get rid of the shag carpeting, avacado green appliances and replace with up to date items!

10. Purchase and rehab a foreclosure, short sale, distress home, out dated, or just old.

www.StLouisHomesByGina.com    The Gina Koerner Team   636-229-8746