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The Section 203(k) Loan Program

TThhee SSeeccttiioonn 220033((kk)) LLooaann PPrrooggrraammTurning Fixer-Uppers into Dream HomesAAbboouutt tthhee SSeeccttiioonn 220033((kk)) LLooaann PPrrooggrraamm If you want to buy a home that needs repair or financeneeded repairs to your current home, the Section 203(k) loan Program by the Department ofHousing and Urban Development(HUD) may be a good option for Program allows you to finance thepurchase of a house or refinance yourcurrent mortgage and include the costof its repairs through a single mortgage. The Section 203(k) loan Program is HUD s primaryprogram for the rehabilitation and repair of single familyproperties. Section 203(k) loans are provided throughHUD-approved mortgage lenders nationwide and insuredby the Federal Housing Administration (FHA), which ispart of HUD. Section 203(k) refers to the law, part ofthe National Housing Act, which allows FHA to makethis mortgage insurance available. The loans are beneficialfor low- and moderate-income individuals or families sincethe loan downpayment can be as little as 3 percent.

individuals, local governments, and non-profit organiza-tions may participate as borrowers in the program, the property must be used as a principal residence by an indi-vidual or family. How the Loan Works You can take out a Section 203(k) loan as a 15- or 30-year fixed-rate mortgage or as an Adjustable Rate

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