Finance
An FHA 203(k) rehabilitation loan allows a buyer to:
APurchase a second home with FHA financing
BFinance both the purchase and renovation of a property in a single loan✓ Correct
CRefinance a conventional loan into an FHA loan
DPurchase a home with no down payment
Explanation
The FHA 203(k) program allows borrowers to finance both the purchase price and the cost of rehabilitation/renovation of a property in a single mortgage. This is useful for purchasing properties that need significant repairs that may not qualify for standard FHA financing in their current condition.
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