What Is an FHA 203k Loan? A gift from our government that is not taken advantage enough by realtors, lenders, and borrowers alike.. This loan can help your client buy and repair a fixer-upper FHA 203k loans are offered by the Federal Housing Administration, The federal government designed these loans to encourage lenders to fund seemingly risky home purchases. Goals of neighborhood revitalization and greater homeownership opportunities also drove the creation of this loan. FHA 203k loans are designated for houses that are damaged or sorely in need of rehabilitation. The loan covers not only the cost of the property but also the cost of necessary home repairs. The down payment requirement is 3.5 percent, and eligibility criteria are loose. Homeowners whose homes need improvement can also refinance with these loans. A vast range of repairs, including room additions, bathroom remodeling, roofing, flooring and air conditioning systems can be funded with these loans. Which houses qualify? There are two types of FHA 203k loans, regular and streamlined. Regular 203k loans are for homes that need structural repairs, and streamlined loans are for those that need non-structural repairs. In order to qualify, homeowners must plan to live in the home they are repairing. The following types of residences qualify: Tear-downs: As long as part of the foundation will remain, houses that need to be destroyed and rebuilt are eligible. Existing construction that is at least a year old. Single-family, two-family, three-family or four-family dwellings. Condos: if they have been approved for FHA loans. Mixed-use properties: If you are repairing only the home portion, a mixed residential/commercial property can qualify. Homes needing to be moved to rest on a new foundation. Which repairs qualify? Allowable repairs include: Disability access Heating, ventilation and air conditioning Plumbing Roofing and flooring Energy conservation Kitchen remodeling New appliances Room additions Decks and patios Bathroom remodeling Room additions or second-story additions New siding Finishing an attic or basement Even something as little as paint and carpet..
Posted on: Sat, 14 Sep 2013 17:43:31 +0000
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