'Your papers, please' must never be heard in America
Homebuyers in today's market are sometimes stumped when they see the potential in a home for sale but do not have the funds available for a down payment, closing costs and remodeling expenses. Homeowners sometimes find themselves in a similar bind: Home equity loans are difficult to obtain, so owners need to find other ways to fund home repairs and improvements.
"One of the only downsides to a 203(k) loan is that it can take a little longer [to close] than a standard mortgage loan," Mr. Gordon says.
"These loans are practically required for people who want to buy a foreclosure, and they work well for refinancing, too," Mr. Gordon says. "The limits on what people can do are pretty lenient, so basically, consumers are limited only by their own budget. Most people stay within a strict budget to keep their monthly payments low, and of course, they need to be able to qualify for the mortgage, including both the repair and purchase costs."
