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Is the 203k loan a good idea to purchase a bank foreclosure in Baltimore, Maryland?
Most (Real Estate Owned, Bank Owned) houses are run down. That is why banks sell them so cheap.
The problem is that financed buyers can’t buy houses with holes in the walls, broken windows, missing bathrooms, filthy carpets, etc. Or buyers don’t usually have the money to pay for repairs out of pocket.
So what is the solution you ask?  The FHA 203k.  The 203k loan allows you to borrow the money you will need to purchase your new home, renovate it and finance up to 6 months worth of mortgage payments while  work is being completed if necessary. It is also one of the few loan products that allows a minimal down payment of 3.5%, with fixed interest rates and conservative terms.
 So where’s the draw back? Up to this point, the 203k has not been a very popular loan because of the lack of need in the market place. It is really important to align yourself with a real estate agent and lender that specializes in 203k financing in Baltimore, Maryland.
In short if you are buying a fixer-upper there are few options for financing. Understanding that there is a product that can take care of your home buying needs is another.