FHA 203k Loan
FHA 203k loans are an awesome option when needing to do repairs or improvements to your primary home you are buying or already own. In short if the improved home value will be worth the cost of the home purchase price and repairs, you can finance in the repairs. Here is a short list of things to know for FHA 203k Loans:
· It is an FHA loan, so you still get the great benefits of a FHA loan including:a low down payment, low rates, and credit scores down to 580
· Max amount of repairs that can be financed in is $35,000(before fees and 10% contingency) and min is $1,000
· No Structural repairs are allowed: foundation, room additions, etc
· Exterior Cosmetic repairs are not allowed: landscaping, fencing, etc
· Allowed repairs are: Roof and Roof Repairs, AC units and repairs, flooring, plumbing, paint, decks, porches, new appliances, oven, etc
· The Contractor Must be Approved by Us before loan is approved
· There is a maximum of 2 draws, one at closing and one after work is completed
· You can actually also Finance up to $8,000 of Energy Efficient improvements on top of the max $35k allowed. So $43k if including energy efficient improvements
· Interest Rate is slightly higher than the normal FHA rate
· Addition Fees: $250 inspection fee, supplement fee of $350 or 1.5% of improvements. These fees are rolled into the amount of repairs being financed. So they are included in the loan.
In this market there are many foreclosures that are available at great deals and a FHA 203k mortgage will allow you to do the repairs needed to buy that home. It is also great for doing improvement s to your own home. Please call me today to find out why a FHA 203k loan maybe the best loan for you! The loan is also sometimes called a Rehab loan and Renovation Loan.
If you are looking for a FHA, VA, USDA, Homepath, Conventional, Jumbo, Construction, FHA 203k mortgage in Fort Bend County, Sugar Land, Houston, Katy, Harris County, Brazoria County, Pearland, Richmond, Bellaire, West University, The Woodlands, Kingwood, Friendswood, Clear Lake, Galveston, Fulshear, Tomball, Spring, Conroe, Montgomery County or anywhere in Texas I am your GUY!