Finance
What is the 'FHA 203(k) loan' and how might it benefit Nevada buyers?
AA standard FHA purchase loan with no renovation component
BAn FHA loan that allows buyers to finance both the purchase of a home AND the cost of rehabilitation/renovation into a single mortgage — useful for buyers purchasing distressed Nevada properties needing significant repairs✓ Correct
CA Nevada state loan program for first responders
DAn FHA loan exclusively for senior citizens in Nevada
Explanation
The FHA 203(k) loan combines a purchase mortgage and renovation financing into one loan. Buyers can purchase a property requiring repairs and finance improvement costs — all with FHA's low down payment (3.5%) and credit-flexible qualification. In Nevada's post-foreclosure market, many properties sold as REO or short sales needed significant work. The 203(k) allowed buyers to finance repairs they couldn't otherwise afford. Standard 203(k) covers major work; Limited 203(k) covers minor repairs up to $35,000.
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