Finance
What is an 'FHA 203(k) loan' and how might it benefit Oregon buyers of fixer-upper properties?
AAn FHA loan for manufactured housing only
BA rehabilitation loan that combines the purchase price and renovation costs into a single mortgage, allowing buyers to finance improvements✓ Correct
CA special FHA product for first-time buyers with no down payment
DA reverse mortgage for Oregon seniors wanting to renovate
Explanation
An FHA 203(k) rehabilitation loan allows buyers to finance both the purchase of a property and the cost of needed repairs/renovations in a single FHA-insured mortgage. This is useful for buyers of distressed Oregon properties who want to improve them but lack funds for separate construction financing. The FHA requires an approved 203(k) consultant to manage the renovation draws.
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