FHA 203K Loan
What is a FHA 203K Loan?
FHA 203k program permits homebuyers and homeowners to finance the construction costs into their mortgage to repair, improve, or upgrade their home. Homebuyers and homeowners can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or an FHA appraiser. Homeowners can make property repairs, improvements, or prepare their home for sale. Homebuyers can make their new home move-in ready by remodeling the kitchen, painting the interior or purchasing new carpet.
To decide if you qualify for a FHA 203KMortgage Loan, we will look at:
- Your income and your monthly expenses. Standard debt-to-income ratios are at the discretion of the underwriter for FHA 203k Loans. These ratios may be exceeded with compensation factors.
- Your credit history (this is important, but FHA 203Kcredit standards are flexible). Your overall pattern rather than to individual problems you may have had.To be eligible for an FHA 203K mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. At least a 580 FICO credit score is generally required to obtain an FHA 203K approval.
The interest rate for your home loan will be determined by the type of loan program that you qualify for and your credit score. You might be asking yourself what the formula to calculate interest rates is. Interest rates are driven off of Mortgage Backed Securities (MBS) which are commonly referred to “mortgage bonds”. These values of these bonds determine whether the interest rates rise or fall. Your final rate will determine your payment using the standard calculate mortgage payment formula. Please contact me to see what is today’s lending mortgage rate.
While FHA 203K Mortgage Guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, and 1-4 family residences. FHA 203k Loans can be used to finance primary residences only.
Criteria for FHA 203Kloan approvals state that if you have been discharged from a Chapter 7 bankruptcy for two years or more, you are eligible to apply for an FHA 203K mortgage. If you have had a Chapter 13 bankruptcy, it must be documented that the credit reputation has been re-established for at least one year to be eligible for a FHA 203K Loan Application.
The maximum amount for an FHA Mortgage Loans are determined by the Maximum loan amount: The maximum loan amount allowed for an FHA Loan varies from county to county. To see what the limit is in the county in which you’re interested, visit the following site https://entp.hud.gov/idapp/html/hicostlook.cfm.
Depending on the state where the property is located, the maximum FHA Mortgage amount will be 90% – 97% of the appraised value of the home or its selling price, whichever is lower.
If you’re not sure if you qualify for a FHA 203Kloan, you can contact me for live, customized FHA 203Kloan quote by completing the online application or by calling me at 843-375-6611
http://en.wikipedia.org/wiki/FHA 203K STREAMLINE_loan