Using the 203k program to purchase ‘dream homes’?

WASHINGTON – Dec. 9, 2009 – With more and more distressed properties hitting the market, mortgage lenders, including Wells Fargo, increasingly offer FHA Section 203k mortgages. The loans finance both home purchases and residential improvements, allowing buyers to purchase dwellings with possibilities and transform them into dream homes. At Wells Fargo, a mortgage consultant works with borrowers to select a home improvement vendor.

Lori Kramer, who purchased a home in Jacksonville, Fla., with a 203k mortgage, says, “In this market, where so many homes have been vacant for so long or gutted in some cases, this program could really change the way people are buying real estate.”

In many instances, homes are in prime locales but need some work; and experts say the 203k mortgage program lets average buyers snap them up.

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