Finance
A buyer in Providence uses a 203(k) rehabilitation loan. This loan is designed to:
AFinance only the purchase price of a distressed property
BFinance both the purchase and the cost of rehabilitation into a single loan✓ Correct
CProvide down payment assistance to low-income buyers
DRefinance existing mortgages to fund home improvements
Explanation
The FHA 203(k) loan allows buyers to finance both the purchase and renovation costs of a property into a single mortgage. It is particularly useful for buying fixer-uppers or distressed properties, which are common in older markets like Providence.
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