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Fact or Fiction: 203(k) Rehabilitation Loans
by Staff
Many people in the market for a home shy away from those in severe disrepair because they can't pay for the renovations. Luckily, there's the 203(k) loan, which gives home buyers both money to purchase and renovate all in one. See if you know how to qualify for a 203(k) loan in this fact or fiction quiz.

You can use your 203(k) loan to buy things like a flat screen TV and furniture.

  • FACT
  • FICTION

You can purchase a four-unit building with a 203(k) loan.

  • FACT
  • FICTION

With a 203(k) loan, you can put as little as 3.5 percent down on your home purchase.

  • FACT
  • FICTION

Condos are eligible for 203(k) loans.

  • FACT
  • FICTION

With a 203(k) loan, you must refinance once the renovations are complete.

  • FACT
  • FICTION

A 203(k) loan works only for foreclosure or short sale properties.

  • FACT
  • FICTION

Hiring a 203(k) consultant is required for the initial application, but the fee is small and will be included in your mortgage.

  • FACT
  • FICTION

203(k) loans can be used to finance the construction of a freestanding addition to the original financed property.

  • FACT
  • FICTION

A 203(k) loan allows you to move an existing house that requires renovation to your property.

  • FACT
  • FICTION

Adding a deck onto the property is considered a luxury addition that the 203(k) loan will not cover.

  • FACT
  • FICTION

203(k) loans can be used for paint and siding.

  • FACT
  • FICTION

If your doors do not have weather stripping, you must add both of these energy efficient features in order to use a 203(k) loan.

  • FACT
  • FICTION

If you paid cash for your home, you can still take advantage of a 203(k) loan at any time by refinancing.

  • FACT
  • FICTION

Applying for a 203(k) loan will ensure you receive the lowest interest rate.

  • FACT
  • FICTION

A 203(k) loan can be used to finance as much as $35,000 for renovations.

  • FACT
  • FICTION

Existing construction has to be less than 1 year old to qualify for a 203(k) loan.

  • FACT
  • FICTION

If you do the renovation work yourself, you can pay your own labor wages out of your 203(k) loan.

  • FACT
  • FICTION

You can roll your 203(k) mortgage payments into your loan for up to one year to avoid making those payments in addition to your rent or another house payment while your renovation work is ongoing.

  • FACT
  • FICTION

You can use a 203(k) loan to finance the purchase of a house you will completely demolish to build a new structure on the same land.

  • FACT
  • FICTION

Mixed-use properties do not qualify for 203(k) loans.

  • FACT
  • FICTION