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Articles Tagged With: FHA 203k Mortgage

FHA home loans

The FHA Section 203(k) Rehab Loan

The FHA 203(k) rehab loan is an important FHA mortgage loan option you should know about–this loan is available as a new purchase loan or a refinance loan you can use to buy and rehab a home at the same time. According to the FHA official site, on a page about the 203(k) rehab loan program, we learn that the 203(k) is aimed at borrowers who need to buy and improve or refinance and improve an eligible property. “When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment.” The FHA says its possible to use 203(k) Rehab loans to save time and | more...

 
FHA Home Loan

Understanding Your FHA Home Loan Options

Understanding your FHA home loan options going into the house hunting season of 2023 means knowing the different choices available to you for a mortgage. Did you know that FHA home loans are available for mobile homes, condos, and manufactured housing? There are many options for property size and type. You can buy a property up to four units large using an FHA mortgage. What Kind Of Home Do You Need? Choices matter when reviewing your home loan options. Choices that include how many units you want in your home (one to four-unit homes can be purchased with FHA mortgages) and the type of property you want; condo units, townhouses, mobile homes, manufactured housing, and even the ability to build instead of buy can be part of your decision-making process. | more...

 
What You Need To Know About Your FHA Home Loan

Don’t Buy A House Without A Home Inspection

Here’s a common example of a home buyer question that is asked after the purchase of a house with an FHA home loan has closed, the new owners have moved in, and suddenly discover there are serious issues with the property: “I did not get a home inspection when I purchased my house, and now there are problems. Do I have any recourse?” If what is meant by “recourse” involves some form of intervention or relief from the lender or the FHA, the general answer is no–you don’t have any avenues of recourse when buying a home if you choose not to pay for the optional but essential home inspection and choose to rely only on the FHA appraisal instead. An FHA appraisal is NOT a home inspection in spite | more...

 
FHA loans

Home Renovation With An FHA Loan

There are two kinds of home renovation projects; the ones you plan and the unexpected renovation you may need to do if there is a sudden problem in the home after purchasing it. An unexpected home renovation can be caused by many things that were not a factor at the time your home inspection was done; a water pipe can burst, a stove can prematurely stop working, or storm damage could cause a leak in your roof. Repair experts and contractors will be quick to point out that even a home that passes an inspection can develop such problems through no fault of the builder or seller. An unexpected home repair situation isn’t uncommon for home owners, so what’s a borrower to do when the need arises? You can fund | more...

 
Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

Are You Ready For An FHA Loan Application?

Are you ready for an FHA mortgage loan? Buying or refinancing a home with an FHA loan takes planning and preparation, but once you’ve put the time in and gather your information, budget for expenses, and check your credit, the process will be far more understandable and accessible. Are You Ready For An FHA Mortgage Loan Application? You may be ready to fill out your FHA mortgage loan or refinance loan application if you have spent the last year reviewing your credit reports, working on reducing your debt-to-income ratio, and have made sure to have 12 months of on-time payments on ALL financial responsibilities. You are ready to apply if you know what kind of home loan you need and how it will be used. For example, are you interested | more...

 
FHA Rehab Loans

FHA Rehab Loans: The Limited 203(k) Option

FHA 203(k) rehab loans include an option for smaller, less ambitious rehab projects. Borrowers who want a home loan to do rehab or repair work but don’t want to do a large project might assume FHA loan funds are not available, but this is not true thanks to the FHA Limited 203(k) Rehab Loan option. What Is The FHA Limited 203(k) Rehab Loan? HUD 4000.1, the FHA loan handbook, describes the FHA Limited 203(k) mortgage as being good for “minor remodeling and non-structural repairs”. The rules for this loan state that the total rehabilitation cost may not exceed $35,000. The good news? There is no minimum repair cost for this type of rehab loan. Ineligible Projects For FHA Limited 203(k) Mortgages HUD 4000.1 features a list of things 203(k) funds | more...

 
FHA Loans

Reasons To Refinance With An FHA Mortgage In 2022

There are many reasons to consider refinancing a home loan with an FHA mortgage. Some aren’t as attractive in times when interest rates are moving higher, and others may require a refinance no matter what the rates are doing.  Recovering from financial or natural disasters can bring a homeowner back to the lender to discuss options for saving a home through refinancing as one possible option. In the spring of 2022 when inflation and other issues contributed to rising interest rates, cash-out refinancing may not be on the table in the minds of those worried about a continued rise in rates.  But some homeowners affected by the pandemic who are struggling to make their mortgage payments or struggling to keep up due to the long-term financial effects of COVID-19 on | more...

 
FHA loans

FHA Rehab Loans And Remodeling Projects

If you are interested in an FHA 203(k) Rehabilitation Loan to buy and renovate a home or want to use the refinance version of the FHA 203(k) Rehab Loan, there are some things you should know before committing to a renovation project.  That’s especially important for those who want to refinance their existing mortgage into an FHA 203(k) and use the loan funds to improve the home they already own. Why? Because it’s easy to get the wrong idea about how much value certain renovations might add to your property. For example, some might believe that adding a pool or hot tub will increase the value of their property.  Never mind that FHA 203(k) Rehab loans don’t permit such luxury items, it’s the misconception that’s most important here. Why is | more...

 
FHA home loans

Is There A Smaller FHA Rehab Loan?

The FHA 203(k) rehab loan is an excellent choice for borrowers who need to repair, upgrade, or renovate an existing home. But some borrowers don’t have ambitious, large-scale work to be done and a “full” 203(k) rehab loan might not be appropriate for smaller-scale work. Is there an option for borrowers who need an FHA 203(k) rehab loan but don’t need a very large sum of money to do the work? The FHA Limited 203(k) Rehab Loan The limited FHA 203(k) allows borrowers to apply for rehab loan funds, but the loans in this case have a maximum total repair cost of $35,000 and no repair cost minimum. This type of rehab loan is an excellent choice for borrowers who want to work on the home but without fully refinancing | more...

 
FHA And HUD

HUD Announces More Funding For Areas Hit By Natural Disasters

The Department of Housing and Urban Development has been very busy in 2021 and 2022 responding to natural disasters and announcing the latest federal disaster assistance in areas hardest hit by storms, fires, flooding, and more.  Homeowners in federally-declared disaster areas soon learn about the FHA’s foreclosure moratoriums and options for recovering damaged or destroyed homes using FHA 203(h) and FHA 203(k) Rehabilitation Loans (amongst multiple options). Now, HUD has announced further assistance for current and future disaster areas in the form of “Allocations for Community Development Block Grant Disaster Recovery” plus the start of something called CDBG-DR Consolidated Waivers and Alternative Requirements Notice.” That notice is described by the HUD press release as being “ a critical step taken by the department to open access to more than $2 | more...