Get Me Approved Today

With homes being foreclosed all across the country in record numbers, you may have looked into purchasing one. They could prove to be a great deal.  But since most of them need some fixing up, you may have thought against it.  Maybe you were scared of the renovation work being to much, you couldn’t see the “beautiful” hiding behind all the “ugly”, or maybe you just didn’t know how to pay for the repairs after you purchased the house. The Federal Housing Administration (FHA) offers the FHA 203K Mortgage Loan and it is the perfect mortgage for a home that needs repair.

FHA 203K Mortgage Loans have existed for decades, and have regained popularity in the wake of the sub-prime loan meltdown.  FHA 203k Mortgage Loans have been around for many years.  They have allowed countless home owners and buyers to purchase and renovate homes with might otherwise be left to blight.  Today the latest thing is energy efficiency and green renovations and the FHA 203k mortgage loan is a great option for the “green” homeowner, allowing them to finance energy efficiency upgrades, like improved windows, insulation, solar panels, ultra efficient heating and cooling systems and much more.

An FHA 203K Mortgage Loan requires as little as 3.5 % down of your loan amount. These loans also offer more

FHA 203K Mortgage Loan

favorable terms and easier qualification than do conventional loans. If you have at least a good credit rating, even with a prior bankruptcy or foreclosure you could qualify for a FHA loan.  Although not a loan from the government, a FHA loan is guaranteed by the Federal government.

If you want to purchase a home, the amount of money you can borrow will be based on the comparable price of homes in the area. The amount of the loan will be the lesser of purchase price of the home plus the cost of rehabilitation, or up to a maximum 110 % of the appraised value after rehabilitation is complete.

There are a few restrictions on FHA 203K Mortgage Loan. The are certain items that must be repaired and certain items you can not use the loan proceeds to do (sorry no jetted bath tubs, and no funds can be used to renovate commercial space in a mixed use property.  There are additional fees associated with this loan, including a supplemental origination fee, fees to cover the rehabilitation plan documents and inspection fees.  These are no loans for beginners, search for a loan officer with experience in FHA 203k Mortgage Loans, the process will be much smoother for you.  Plan to take a little longer to close, maybe 60 days.  You will need to find contractors to complete the work you want done and obtain estimates prior to loan approval.

Don’t let a home that needs work get in the way of your dream, talk to your lender about a FHA 203K Mortgage Loans and buy the home of your dreams!