FHA-Loans-Information

FHA home loans that are insured through the Federal Housing Administration (FHA) are excellent financing choices for any homeowner who would like to get a home or refinance their existing house loan. These loans have low interest rates in most cases only need down payments of 3.5 percent! FHA loan requirements are usually simple, therefore existing and prospective homeowners are more apt to be eligible  for these loans than other types of loans.  A FHA 203K Mortgage can be a great way to buy a home that needs repairs or even refinance home improvements on your existing home.

There is an exception to the FHA requiring a 3.5% down payment.  The exception is the special “HUD $100 Down Payment Incentive.”  You can buy a HUD foreclosed home with only a $100 down payment.  You can get more information on this special HUD $100 Down Payment Incentive Program by clicking on the links at the end of this article.

FHA 203K Mortgage Rehabilitation Mortgage Insurance Program

The FHA provides a special mortgage program to aid homeowners who need to make enhancements or repairs on their home, but don’t have the money to do so. These loans are known as FHA 203K Mortgages and may be used for both a purchase or even a refinance. There are 2 types of loans in this program, one loan is for repairs that cost less than $30,000 and the other mortgage loan is for repairs that cost above $30,000.

A Streamline FHA 203K Mortgage option can also be available to homeowners that are considering doing non-structural repairs or upgrades. This particular mortgage needs a smaller amount documentation and can be less costly. It enables a homeowner to fund up to an additional $35,000 into their house loan in order to make improvements towards the home. An FHA home inspector or appraiser can determine home repairs that should be made.

How The FHA 203K Mortgage May Be Used

Despite the fact that there are a few constraints on what the mortgage may be used for, there are many refurbishments and home repairs that the mortgage may cover. Usually, these include modernization, getting rid of safety or health dangers, making a home more accessible for those that have disabilities, or making a home more energy efficient. More specifically, the mortgage loan may be used for roofing, plumbing, flooring, painting, and small remodeling plus much more.

FHA 203K Mortgage Loan Requirements

There are certain requirements along with this kind of financing. Homeowners used to need to spend at the very least $5000 on their home repairs to become eligible, but that requirement has been removed. Homeowners need to get cost estimations from a licensed as well as insured contractor(s) in advance of signing the sales contract. The full cost of the mortgage loan, such as repairs, need to stay within the FHA loan limitations for the county in that the home is located.

This FHA 203K Mortgage can’t be used to flip houses, as well as the homeowner must use the mortgage on the home in which they resides. The work being done on the home need to commence within 30 days from the loan closing. All work need to be concluded within six months to conform to the loan requirements.

If a homeowner really wants to make repairs to their home and needs additional financing, this kind of financing may be the smartest choice. Most of the same eligibility standards used by standard FHA home loans apply to the FHA 203K Mortgage. The majority of loan companies require that the borrower have a credit score that is at least 620 to be eligible. To qualify for the loan, specific energy efficiency standards, in addition to certain structural standards, have to be fulfilled.

The FHA 203K Mortgage could possibly be an excellent answer for homeowners who desire a better approach to finance home repairs and improvements while not using up their savings.

Click Here To Get More Information On The HUD $100 Down Payment Incentive!

Technorati Tags: FHA 203K Loan Requirements, FHA 203K Mortgage, fha 203k mortgages, fha loan requirements

FHA 203K Mortgage FHA 203K Loan Requirements, FHA 203K Mortgage, fha 203k mortgages, fha loan requirements

The FHA 203K Mortgage is a kind of financing which is insured through the Federal Housing Administration. This is a completely unique form of financing that enables homeowners to get both a purchase mortgage loan and also rehab financing within the same transaction.

Prior to this kind of transcendent mortgage loan program, a homeowner were required to get an initial, short-term loan to buy the home plus a different rehabilitation home loan to make any needed repairs. Only after the repairs were complete could the homeowner obtain permanent financing for their recently improved home.

One of the best deals currently offered by FHA and HUD is the HUD $100 Down Payment Incentive Program.  You can buy a HUD foreclosed home with only $100 down payment and if you want to you can still use the FHA 203K Mortgage to rehab it if needed.  You can get more information by clicking HUD $100 Down Payment Incentive Program and learn how to buy HUD Homes with only a $100 down payment.

FHA 203K Mortgage: Exactly how does it work?

The FHA 203K Mortgage Loan was made to streamline the process of purchasing a home in need of repairs. To be able to provide funds for the repairs, the mortgage loan amount will be based upon an predicted future appraised worth that will take into account the amount of value the finished repairs will probably increase the current value. As much as $35,000 above the purchase price of the home can be financed into the mortgage to pay for the expense of repairs.

The contractors selected by the buyer to complete the repairs will collect the amount of money for their work in two draws. One draw is made for 50% of the work and it is disbursed at the start of the repairs while the remaining 50% is going to be disbursed after the work is finished.

The repairs have to start within thirty days from the closing of the loan and need to be concluded within six months. The total amount paid out to the contractor(s) have to be decided before the mortgage loan closes by having written bids on materials and labor expenses. The homeowner can perform the work themself provided he is a licensed and bonded contractor.

Just what sorts of repairs will the FHA 203K Mortgage cover?

A number of the repairs eligible to be done with the money from an FHA 203k Mortgage Loan include: roof replacement, electrical or plumbing related work, kitchen improvement, accessibility renovations, appliance acquisitions, as well as painting.

Even though numerous cosmetic renovations are permitted, luxurious things and improvements usually are not allowed. Additionally, any funds necessary to repair to any detached buildings, such as sheds, swimming pools, and gazebos, will not be a part of this loan amount.

FHA 203K Guidelines:

The FHA 203K Mortgage program has the identical types of eligibility requirements which exist on any FHA home loan.  A homeowner have to qualify based on both credit and earnings to become eligible and also the home have to be FHA approved.

In general, the monthly mortgage payment can’t surpass 41% of the borrower’s monthly earnings many loan providers require a minimum of a 620 credit score.

Homes which are eligible include: FHA-approved condos, 1-4 unit homes, and planned urban development homes (PUDs). The building of the house will need to have been finished at minimum one year prior to financing in order for the home to be eligible.

The FHA 203K Mortgage program can be quite a excellent tool for any homeowner seeking to refurbish or repair their home. In a real estate market which has seen foreclosures achieve record highs, the FHA 203K Mortgage loan can not only give prospective home owners with much more possibilities to buy a home, but also can help rebuild the housing industry by facilitating the rehabilitation of foreclosed homes.

Technorati Tags: fha 203K guidelines, FHA 203K Mortgage, fha 203k mortgage loan, how to buy hud homes, HUD $100 down payment incentive

FHA 203K Mortgage fha 203K guidelines, FHA 203K Mortgage, fha 203k mortgage loan, how to buy hud homes, HUD $100 down payment incentive

Home ownership – its part of the American dream. A place to call your own, to raise your family, a sanctuary when the world gets to be too much; a home is all of these and so much more. Unfortunately, many people believe that home ownership is out of their reach. They believe that due to a lack of credit history, low income, or any other number of things, they won’t be able to secure a mortgage with a reasonable, affordable interest rate. Fortunately for them, the Federal Housing Administration offers various home ownership programs, including the FHA Rehab Loan.

The FHA rehab loan is one of the FHA’s programs designed to help first time homeowners secure affordable home loans, and is specifically designed for the potential homeowner looking to buy and rehab a home.

As they are searching the housing market for a place to call their own, many first time homeowners consider purchasing a “fixer-upper”. A good source of “fixer-uppers” is HUD Homes for sale. Oftentimes, homes that could use remodeling are the least expensive ones on the market. This, combined with the opportunity to remodel to their own specifications, draws many first time homeowners to these “fixer-uppers”.

It is for these people that the FHA rehab loan is especially helpful. Traditionally, a homeowner wanting to remodel a home would have to acquire two loans – one for the acquisition of the property, and a second for the rehab. Then, when the property has been finished, they must acquire a third, permanent mortgage to pay off the first two loans. With a FHA rehab loan however, potential homeowners are able to acquire one mortgage, both for the acquisition of the property and for the rehab of it.

It is important to note that the FHA itself does not loan money. An FHA rehab loan is a loan offered by a bank or mortgage company, and insured against default by the FHA. Through this program, lenders are able to offer lower down payments and smaller interest rates, something they wouldn’t otherwise be able to do for first time homeowners.

Many first time homeowners qualify for these FHA insured loans. There are no income limits, and you don’t have to have perfect credit. And the benefits of an FHA rehab loan over a traditional loan are clear: they are easier to qualify for, they have lower down payments and interest rates, and they are easier to qualify for.

So if you are one of the millions of Americans out there ready to own your own home, then contact an FHA-approved lender today. The dream of remodeling your first home is likely closer than you think because of the availability of a FHA rehab loan.

For another great article about FHA rehab loan please click FHA 203K Loan or if you want  information on how to buy HUD Homes for Sale please click Streamlined FHA 203K Loan.

Technorati Tags: fha rehab loan, fha rehab loans, fha-approved lender

FHA 203K Mortgage fha rehab loan, fha rehab loans, fha-approved lender

To understand what FHA 203K loan is we must first understand what exactly a FHA home loan is. The FHA — Federal Housing Authority — offers government guaranteed loans to home buyers which gives the banks the confidence to lend money to people they may not normally grant a mortgage to.

This is not to say that the you are borrowing money from the government nor is it to say that by applying for a FHA home loan you will automatically be approved, but it is to say that you are more likely to approved for a FHA home loan than a conventional loan if you have average or below average credit, including a bankruptcy, and less than 20% for a down payment, currently the down payment requirement is 3.5% — which is considerably lower.

Now that we understand the basics of a FHA home loan, it is time to introduce the fact that in addition to the standard FHA loan offered, there are many other FHA loan programs that home buyers may wish to take advantage of including the traditional 30 year fixed rate mortgage, standard 15 and 20 year mortgages and even any manner of adjustable rate mortgages as well, you can even get qualified for refinancing or taking out the home equity via a home equity loan through FHA programs as well.

It seems, though, that one of the most popular FHA loan programs that are offered is the FHA 203k loan. These loans carry the standard features of traditional FHA loans — flexible credit, assumable loans, and low down payment to name a few — but goes a step further by making it easy to rehabilitate a home all in one loan packaged together.

Using an FHA 203k loan can help people who need to renovate their current homes by securing financing to do so or home buyers can use these loans to purchase and rehab a preexisting home elsewhere.

This can benefit everyone involved from the community by making surrounding areas nicer for all citizens, to the home owners themselves by allowing them to purchase what could be their dream home and providing the funds to make their dream a reality. All of that and under one loan package, in today’s unstable housing market, taking advantage of FHA programs is definitely the way to go.

With the glut of foreclosures on the market including HUD homes for sale which some of them requires repairs, the FHA 203K Loan may be the answer to purchasing your dream home at a bargain price!

Technorati Tags: fha 203K loan, fha home loan, fha loan programs

FHA 203K Mortgage fha 203K loan, fha home loan, fha loan programs

With a record number of homes being foreclosed all across the country, you may have investigated purchasing one. But since most of them need some fixing up, you may have thought against it, thinking the savings on the house would be more than eaten up in the cost of fixing it up. Or perhaps you want to keep your home, but it requires a lot of repair. The Federal Housing Administration (FHA) offers the FHA 203K Mortgage that can be used for both of these purposes.

This type of mortgage not only prevents neighborhoods from becoming blighted by a large number of foreclosures, it can also be used to help save the environment by altering homes so that they can become more energy efficient. Some of the green additions you can make include windows, furnaces, appliances, floors, landscaping, solar panels and insulation. Certain repairs can be made by the borrowers themselves and not a contractor.

Although not a loan from the government, a FHA loan is guaranteed by the government.

FHA 203K Mortgages have existed for decades, and have regained popularity in the wake of the sub-prime loan meltdown. Because some banks and mortgagors are struggling to survive due to unprecedented loan defaults, conventional loans are now requiring a 20 to 30 percent down payment. First-time home buyers are hard pressed to come up with this large amount of money.

However, a FHA 203K Mortgage only requires 3.5 percent down. These loans also offer more favorable terms and easier qualification than do conventional loans. If you have at least a good credit rating, even a prior bankruptcy, you could qualify for a FHA loan.

If you want to purchase a home, the amount of money you can borrow will be based on the comparable price of homes in the area. The amount of the loan will be the lesser of its present value plus the cost of rehabilitation, or 110 percent of the appraised value after rehabilitation.

There are a few restrictions on these loans. The homes that qualify for a FHA 203K Mortgage need to be at least one year old and the cost of the needed repairs used be at least $5,000, but that no longer apply. There are additional fees associated with this loan, including a supplemental origination fee, fees to cover the rehabilitation plan documents and appraisal fees.

The time to close can take as many as 60 days, but usually takes from 30 to 45 days.

So, if you see a foreclosed home or maybe a HUD Homes for sale don’t let the necessary repairs stand in your way of getting a bargain.  Talk to your lender about a FHA 203K Mortgage and buy the home of your dreams!

Technorati Tags: FHA 203K Mortgage, fha 203k mortgages, fha loan, hud homes for sale

FHA 203K Mortgage FHA 203K Mortgage, fha 203k mortgages, fha loan, hud homes for sale

What is a Home Loan Modification vs FHA Loan Refinance?

Differences between loan modification vs. FHA refinancing are not hard to understand when you have the right information. Read to get educated and talk to a financial counselor about making your home loan more affordable.

Are you one of the millions of American homeowners who has been suffering from the economic recession and is worried about Read more…

Technorati Tags: fha loan refinance, fha refinancing, hoe loan modification

FHA 203K Mortgage fha loan refinance, fha refinancing, hoe loan modification

FHA 203K Loan – Use The FHA 203K Financing To Go "Green"!

If you want to be part of the "Green Movement" and update your home to be more green friendly and also to reduce and save money on your energy costs, you may want to look at FHA 203K Loan to finance the improvements.

We all want to save money on energy costs and help to clean the environment.  The FHA 203K Loan will help you install new windows, new energy efficient furnace, new appliances, and many green friendly improvements.

The author of the article below discusses the many ways you can use FHA 203K Financing to improve our environment.

Green Renovation Lending – How to Go Green With FHA 203K Financing

Today’s world is changing at a dramatic pace. Skyrocketing energy prices and a planet showing years of abuse have led many to consider the way they live and how to change their lifestyle. The easiest and best way to reduce our energy consumption and to help preserve the planet for our children and grandchildren is to start at home.

The place where we spend the most time, where we consume the most energy and our biggest asset all in one. Our homes are responsible for huge outlays of money and Read more…

Technorati Tags: fha 203K, fha 203k financing, fha 203K loan, fha 203k renovation loans

FHA 203K Mortgage fha 203K, fha 203k financing, fha 203K loan, fha 203k renovation loans

FHA 203(K) Rehab Loan – The Secrets Of The FHA 203(K) Rehab Loan!

You want to rehab your home or you want to buy a house that needs major renovation and you looking for a way to finance the costs.  FHA offers two choices, the traditional FHA 203K Rehab Loans and the easier FHA Streamline 203K Rehab Loan. 

If you have more than $35,000 in renovation costs than you need the traditional 203K Rehab Loan and if your renovation costs are less than $35,000 you can the 203K Streamline Rehab Loan.

The author of the article discusses mostly the traditional FHA 203K Rehab Loan but he does touch on the FHA 203K Streamline Rehab Loan.

The Secrets of the Mysterious FHA 203(k) Rehabilitation Home Loan …

The FHA 203(k) Home Renovation Loan is perfect for HUD foreclosures, handy-man specials, or any home in need of repair. This is because it offers borrowers the ability to finance the cost of the rehabilitation of a property. And this loan can be used for either the borrower’s current residence or a fixer-upper into which a borrower wishes to move.

The eligible improvements allowed on FHA 203(k) loans are numerous, and many clients are pleasantly surprised at just how useful of a tool this loa Read more…

Technorati Tags: 203K rehab loan, 203K streamline rehab loan, fha 203K rehab loans, FHA 203K rehabilitation home loan, fha streamline 203K rehab loan

FHA 203K Mortgage 203K rehab loan, 203K streamline rehab loan, fha 203K rehab loans, FHA 203K rehabilitation home loan, fha streamline 203K rehab loan

FHA 203K Renovation Loan – You Don’t Have TO Sell Your Home To Get What You Want!

The dilemma for you may be you need more space or you want a more updated home but you don’t want to put your house on the market in today’s struggling housing market.  You don’t have to money to renovate you home.  What are you to do?

Well, you may want to look at a FHA 203K Renovation Loan.  With a FHA 203K Renovation Loan you can make improved your home to the extent you are getting what you want in a home without moving.

The author of the article below will give you general information about FHA 203K Renovation Loans.

FHA 203K Renovation Loans – You Don\′t Have to Move Out to Move Up!

When most homeowners want more space or a nicer place they call Real Estate Agent and start their search for a new home. It doesn’t have to be that way though, you don’t have to move out to move up!

Recently homeowners wanting new digs have found the going a bit tougher. Both Fannie Mae and FHA have instituted restrictive new rules aimed at homeowners looking to buy a new place and rent out their current residence until market conditions improve. For both you now must have significant e Read more…

Technorati Tags: fannie mae homestyle, fha 203K rehab loan, fha 203k renovation loan, fha 203k renovation loans

FHA 203K Mortgage fannie mae homestyle, fha 203K rehab loan, fha 203k renovation loan, fha 203k renovation loans

FHA-HUD 203(k) Loan Program – Is It Too Time Consuming?

When I tell a seller that I have a buyer and they want to do a FHA-HUD 203K loan the seller will say it take too long to close.  The buyer wants a FHA-HUD 203K because they want to finance the necessary repairs into the loan.  Does the FHA-HUD 203K Loan Program take too long to close?

Not really.  You can get the purchase close within 30-45 days and shorter if you are using the FHA-HUD Streamline 203K.  

The author of the article below will discuss the two kinds of FHA-HUD 203K Loan Programs, the traditional 203K and the Streamline 203K.

FHA-HUD 203(k) Loan Program

One of the biggest misconceptions about the FHA 203K loan process is that it is a difficult and time consuming.

It is only difficult if your loan officer and realtor are inexperienced with the process. As far as being time consuming, whenever you involve third party consultants and contractors you increase the amount of time a loan takes to close. However, on most renovations there is no reason the process cannot be completed in 30-45 days. I have seen them close in 20 days from the initial c Read more…

Technorati Tags: 203K streamline, fha 203K, fha 203k streamline, fha-hud 203k, fha-hud 203k loan, fha-hud 203k loan program, fha-hud 203k streamline

FHA 203K Mortgage 203K streamline, fha 203K, fha 203k streamline, fha-hud 203k, fha-hud 203k loan, fha-hud 203k loan program, fha-hud 203k streamline