Fha 203k Renovation Loan

If you plan to purchase a fixer-upper or need to make improvements to your existing home, an FHA 203(k) loan may be the perfect rehab loan for you. By combining the construction funds with your home mortgage, an FHA 203(k) loan limits your loan closing costs because it’s just one loan that provides you the necessary funds to buy a home and make the desired repairs or improvements. An FHA 203(k) loan simplifies the home renovation process. FHA 203(k) loans are backed by the federal government, and are typically given to buyers who want to purchase a home and perform upgrades, repairs, remodel or customize to their needs and wants.
HomeBridge Financial Services has a nationwide team of 203(k) specialists who are helping buyers just like you take advantage of the opportunities supported by this program, including:

• Those interested in purchasing a fixer-upper home that’s in need of upgrades, repairs, or larger renovation projects, even if the home is being sold “as is”.
• Those who are purchasing a foreclosed property from banks, housing agencies, and government-sponsored enterprises, as well as short-sale properties.

Homeowners who would like to refinance with today’s low rates and get the funds they’ll need to transform their current home into their dream home.

FHA 203(k) Loan Overview

The Federal Housing Administration (FHA) administers the FHA 203(k) loan program, which makes it possible for buyers to purchase a property with the cost of repairs and improvements included in the loan. Since the program was designed to finance renovations and help revitalize neighborhoods, the required down payment may be as low as 3.5 percent of the total cost.
In addition to low down payments, the eligibility terms of an FHA 203(k) loan are more flexible. In general to be eligible for an FHA 203(k) loan, you must have a credit score of at least 620. Unlike other loans, you do not need to be a first-time homebuyer in order to be eligible. If the renovation is extensive and you cannot live in the home during construction, up to six months of mortgage payments may be included in the FHA 203(k) loan, so you can avoid making double housing payments while living outside of the home.
Although some restrictions and special rules apply, 203(k) loans can be used to purchase and refurbish condos1, two-to-four unit properties, and mixed-use properties2, in addition to single-family residences and homes in planned unit developments. As a top 203(k) lender in the market, HomeBridge can lend you the maximum amount under a 203(k) loan, which is 96.5 percent of the after-improved value*. For refinancing, the maximum loan amount is 97.75 percent of the after-improved value**. To check the current loan limits by county, visit http://entp.hud.gov or check with your Mortgage Loan Originator for the current limits.