Finance Your Fixer Upper With The FHA 203k Rehabilitation Mortgage

Finance Your Fixer Upper With The FHA 203k Rehabilitation Mortgage

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A FHA 203(k) Rehabilitation Mortgage, is a loan that is backed by the Federal Government. A FHA 203(k) Loan can be used to finance residential homes that are fixer uppers or to update your current home. By design a FHA 203(k) loan gets rid of unnecessary paperwork and makes the financing process much easier. Before, home buyers would need to apply for more than one loan to finance a fixer upper, with the FHA 203(k) loan only one application is needed.


WHAT HOMES QUALIFY?

  • A one- to four-family home that has been completed for a least a year

  • A home that has been torn down, provided that some of the existing foundation is still in place

  • A home that you want to move to a new location

  • The home cannot be a co-op, but some condos are eligible


Can I rehab a building having both residential and commercial space

The 203(k) Rehabilitation Mortgage Insurance Program mortgage, may be originated on a "mixed use" property provided: 

  •  51% of the Gross Building Area (GBA) is for residential use; and 

  •  commercial use will not affect the health and safety of the occupants of the residential Property.

The 203(k) proceeds may not be used to finance costs associated with additions or alterations to support commercial use or to equip or refurbish space for commercial use. 

For additional information see Handbook 4000.1 II.A.8.a.iii. and II.A.8.a.vi.(B) (Click here)


WHAT'S THE MINIMUM CREDIT SCORE? HOW MUCH DOWN PAYMENT IS NEEDED?

Generally, You may be eligible with a FICO score of at least 620 and 3.5% down. Anything less than 620, may have additional requirements.


WHO QUALIFIES FOR A FHA 203(K) LOAN?

Everyone including First-time home buyers, As long as you live in or intend to live in the home and meet all of the FHA 203(k) loan requirements are eligible. History of home ownership doesn't matter.


WHAT REPAIRS QUALIFY?

There are two primary types of FHA 203(k) loans. The first is the standard 203(k), which covers things like structural repairs, remodeling, a new garage, or landscaping; the other is the streamlined or limited FHA 203(k) loan. It covers conservation improvements, new roofing, new appliances, or non-structural repairs such as painting.


Other repairs that qualify: decks, patios, bathroom and kitchen remodels, flooring, plumbing, new siding, additions to the home such as a second story, heating and air conditioning systems, and more!


Some examples improvements not covered: adding a tennis court or pool, or anything considered a luxury repair. Another thing not covered is any improvements that don't become a permanent part of the property.


MORE INFO FROM THE SOURCE!

To get all the details about the FHA 203(k) Rehabilitation loan, and how to apply, CLICK HERE!






Ashley Batiste of eXp Realty

CALL OR TEXT:

ASHLEY BATISTE, REALTOR ®

251-308-5445


OR SEND AN EMAIL TO:

[email protected]

www.AshleyBatiste.com


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REALTOR & MLS MEMBEREQUAL HOUSING OPPORTUNITYBrent Beavers, AL State Broker | Company Lic. # 90164

Tel: 1-888-923-5547


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Phone: 251-308-5445
Dated: September 10th 2017
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About Ashley: Mobile, Alabama native. Worked as a civilian contractor with the Army Recruiting command in Mobile, ...

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