FHA Loan Offers Win/Win for Home Buyers & The Economy

Maybe you’ve been shopping around for awhile, and even with the vast amount of housing inventory available, you just can’t seem to find the home that matches the vision in your imagination, but you don’t have to settle.

With a special loan program offered to home buyers, you can transform the home you want to buy into the home you imagine.

The loan is called an FHA 203(k) loan which is renovation financing offering a great opportunity.

The Section 203(k) program is offered through the Federal Housing Administration Department's primary program for the rehabilitation and repair of single family properties.

The loan holds the promise of revitalizing and priming the pump for the housing market, according to Michele Zyska, a life-time resident of Berkeley Heights, Sales Associate with Keller Williams Realty Premier Properties in Summit, NJ.

“This loan could stimulate the home buying market because the lesser priced homes need to sell first in order for homes at higher prices to begin selling again. It’s a domino effect,” said Zyska.

She believes this loan will have a similar effect as the first time home buyer rebate that was available last year.

“This loan allows buyers to purchase a house and turn it into the home of their dreams, said Eileen Kelly, Sales Associate with Keller Williams Towne Square Realty, in Bernardsville.

The loan amount is based on the value of the home after improvements have been made.

“The benefit of this type of financing is that it allows buyers to purchase a house with the space they need and want and spread the purchase and improvement costs over the entire term of the loan, with as little as 3.5% down,” said Kelly.

And the loan does not limit the buyer to any particular type of renovation. It could include: a new kitchen, updated bathrooms, an addition, new floors, windows, roof, plumbing, whole house electrical, even a pool.

“This is an incredible opportunity to purchase the perfect house at all different price points, sizes, styles and amenities.  This type of financing allows buyers to explore the potential a house can have and not be limited by what the house has to offer at the time of purchase,” said Kelly.

Zyska said she currently is currently representing four homes for sale and two homes for rent in Berkeley Heights.  

“The great thing about this opportunity is that if you are looking at a home that is not in great shape, you can simply add the amount you need to upgrade the home and it’s a one-stop process, whereas in the past, you would have to apply for a separate loan or line of credit if you wanted to do renovations,” said Zyska.

Kelly and Zyska agree, the FHA home improvement loan promises to crank the engine of an otherwise sputtering economy.

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For more information, you can reach interviewees at:

Michele Zyska, michelezyska@kw.com

Eileen Kelly, homes@smartgreenrealestate.com