The FHA Section 203k loan program allows buyers to purchase (or refinance) a home and finance renovation costs all in one loan. Typically homes in need of repair sell below current market values. What better than to buy a home and have the cash to fix it up the way would like too?
Home repairs can be anywhere from cosmetic to a complete home renovation...you can include new appliances too. The minimum repair amount is $5,000 and the maximum is subject to 110% of the home's value or the FHA County loan limit, whichever is less.
Do not be afraid, you do not have to be experienced in home repairs. An FHA 203k HUD Consultant will inspect the home to determine the required repairs and the costs to meet FHA standards. You choose your own licensed and insured general contractor and the FHA 203k HUD Consultant will work with you and your general contractor to coordinate your work write up for your home renovations.
Credit standards are the same as the traditional FHA loan program. Basically a mid credit score of 620 and the last 12 months of your monthly payments on time. Down payment is 3.5% of the purchase price and renovation costs.
Once you close on the purchase (or refinance) of your home you can begin your home renovation. You can request your 1st Draw (money for repairs)at the time of closing and up to 4 more Draws with your final Draw being given after completion and final inspection. The FHA Section 203k loan program allows you up to 6 months to complete your home renovation project.
Please call or email me with questions.
Thank you for reading!!!
Christian L. Draheim
Vice President of Government Lending
Gold Star Mortgage Financial Group
cdraheim@goldstarfinancial.com
Home repairs can be anywhere from cosmetic to a complete home renovation...you can include new appliances too. The minimum repair amount is $5,000 and the maximum is subject to 110% of the home's value or the FHA County loan limit, whichever is less.
Do not be afraid, you do not have to be experienced in home repairs. An FHA 203k HUD Consultant will inspect the home to determine the required repairs and the costs to meet FHA standards. You choose your own licensed and insured general contractor and the FHA 203k HUD Consultant will work with you and your general contractor to coordinate your work write up for your home renovations.
Credit standards are the same as the traditional FHA loan program. Basically a mid credit score of 620 and the last 12 months of your monthly payments on time. Down payment is 3.5% of the purchase price and renovation costs.
Once you close on the purchase (or refinance) of your home you can begin your home renovation. You can request your 1st Draw (money for repairs)at the time of closing and up to 4 more Draws with your final Draw being given after completion and final inspection. The FHA Section 203k loan program allows you up to 6 months to complete your home renovation project.
Please call or email me with questions.
Thank you for reading!!!
Christian L. Draheim
Vice President of Government Lending
Gold Star Mortgage Financial Group
cdraheim@goldstarfinancial.com
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800-506-3076
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