What is the FHA 203(k) Loan?
The FHA 203(k) allows homeowners and homebuyers an opportunity to purchase or refinance existing homes and finance 110% of the costs needed to improve the home! The 203(k) is ideal for neighborhood revitalization! This program is one of the fastest growing mortgage programs in the country.
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What you can do with the FHA 203(k):
☆ Include all repairs in the mortgage - with a minimum of $5000 in repairs
☆ Eliminate health hazards
☆ Put on an addition - add a second floor
☆ Remodel a kitchen, bathroom, etc.
☆ Replace Siding, roof, gutters, downspouts, etc.
☆ Update the plumbing, heating and electrical systems
☆ Install or repair the well and/or septic system
☆ Replace flooring, carpeting or tile
☆ Make energy conservation improvements: Double pane windows and doors, insulation and caulking
☆ Add a deck, patio or fencing
☆ Repair an existing swimming pool
☆ Replace free standing appliances
Get the answers to all of your questions!
Call Jeff Belonger to help you with your financing needs.
1-888-835-1663
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For more information on FHA loans, please go to this link. The FHA Expert You can also go to this group : The FHA Mortgage Group
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
Copyright © 2007 by Jeff Belonger
Jeff,
Greta Info on another Great Product!! :0)
Thanks,
Tom Weiss
For 110%....FHA is the best way to go!
:-)
Charlie.... for the most part, when I started in 1992, by 1994, I already was introduced to so many of these products. One reason why I feel like I know so many of them inside and out. It is true in what they say though, experience can go a long way.
Tom W. ...... Thanks for stopping by and for the compliment.
Kris...... yes, FHA is a great way to go. One thing that I didn't mention was that you can do this type of program on the conventional side. But it requires a little more money down. FHA is just a lot less money out of pocket.
Jeff,
I just took this class, and want to share with eveyone, that I think this program is going to be one of the best products in this market. You explained it perfectly. Great informative post.
Gary..... Glad that my explanation was something like your class.
Karen..... the only negative thing about the 203-k and the rehab conventional program is that you don't get the normal rates. They to to be about 1/2% to 3/4% higher in rates. Other than that, it's a great program to adding to your house or fixing it up, outside of a home equity loan.
Jeff,
Another good post with solid good ideas! Thanks, Fran
Jeff, I blogged about this a little while back, and I completely agree with you that it is a wonderful program that FHA offers!! It has helped several of my clients obtain their dream home, and also helped them avoid other potentially harmful scenarios as well (foundation, etc). What people should also know is that these Rehab loans (203k's) are not just limited to FHA; they are also available as either Construction loans or One-Time-Close loans as well for higher-than-loan-limit properties.
Again, great job with the awareness, as always! I look forward to more of your posts in the future!
Great information to know.... I can get my client to look into this option.... Thanks again Jeff...
Jeff - Can this program be used for Multi-Units (owner occupied or non-owner occupied)?
Thanks.
I've heard that the closing cost on FHA 203K is almost three times higher than conventional closing cost...is that true? What causes the difference?
CHUCK... so sorry for the delay..... yes, it can be used for 1 to 4 family as a primary residence tool. It can also be used in conjuction with a commcerical property, as long as there is a certain percentage used for living space and is primary. But not non-owner.
CLOSING COST...... why compare a 203-k to a convnetional deal? Wouldn't you be comparing a regular FHA loan to a regular conventional loan?
Now, if you meant the conventional rehab program, that is a different story. And to answer your question, no, the costs would be the same. The negative with a conventional rehab is that you need good credit scores and 10% or more down. FHA 203-k, the scores can be much lower and you still only need 3% into the transaction.
He is my guess.... the person telling you this doesn't know anything about the FHA 203-k or they aren't even licensed to do FHA loans period. And not all lenders that can do FHA can do 203-k loans or even know how. I know this for a fact, because in Califironia, many brokers say they can't do 203-k loans... but that they can do FHA loans. You need a true expert that know how to do the 203k loans and that their company is full equiped to handle them. I hope this helps some.
I am pursuing a property in the state of NJ. The property is 145,000 and my closing cost are coming to 15,000. I am getting this property using an FHA 203K with 3% down and my credit scores are all around 750 or 760.
CLOSING COSTS..... why don't you call me or e-mail me. It would be easier to discuss this. And possibly send me your good faith estimate, because I would be able to tell you what is a cost and what isn't. It just doesn't sound like it's been explained properly to you.
My e-mail address is : jbelonger@ihmci.com and my cell is 609-440-5133 thanks, Jeff
ANTHONY aka closing costs....sorry that I lost you on the phone. Please call me back at your earliest convenience. thanks, jeff
Hello! Just curious if the $5 is specific to lender or FHA. The lender that is offering this locally (and there is only one that we have seen offer this which is Taylor, Bean & Whittaker) states that there is no minium only a max of $35,000....
Amy:
FHA imposes a minimum of $5000 in repairs. (FHA Mortgage Letter 2005-59)
This is all very informative just started doing FHA Loans and there great!!! It is so much better than people make it out to be. Thanks Jeff your post are always so informative...... Keep posting...