JACKSON, MS (WLBT) - A HUD home financing loan, known as a 203K, has suddenly become very popular in today's tough real estate market.
It allows a prospective home buyer to get a rundown property for cheap and with one loan -- get federally backed money to buy it and renovate.
A home in northeast Jackson will cost it's new owner about $180,000 with a 4.75 percent loan. That is the cost of the house and the renovation.
The cost is way below what other homes in the neighborhood have been selling for and the homeowner gets a freshly renovated home with 2010 features.
Bo Smith says most of his business in the residential mortgage lending profession is now coming from this new way of financing.
Smith sees the 203K HUD loan program as a way for Jackson to renovate it's large stock of rundown homes, and give consumers a way to have affordable housing.
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