Say you’re a first-time homebuyer. You know you’re making a major financial commitment. But you’ve already calculated the down payment, closing costs and mortgage payments, and you can handle them all on your income. So now you have nothing more to worry about, right?
Many first-time homebuyers fail to take into account the additional expenses that crop up if the new property needs work — whether it’s landscaping, repainting or new carpeting. It’s unfortunate when homeowners invest a good deal of time, money and effort into buying a new home, only to render themselves house poor because they failed to take those additional expenses into account.
A 203k can help prevent that from happening. Not only does it finance the home, but it provides money that can be used for expenses such as appliances, countertops or new carpets, in addition to many other items.
This can be a big break for new homeowners, who typically aren’t flush with extra cash after paying the down payment and closing costs. Even if they’re lucky enough to have extra cash on hand, they can set it aside for a rainy day fund or a specific purpose such as their children’s education, rather than being obliged to use it for making the new home habitable.
Many lenders don’t offer a 203k. AnnieMac Home Mortgage has an entire division dedicated to them. Give us a call to get more information. We’ll give you options so you can set aside your financial worries and start enjoying your new home from day one.