One of the most underutilized financing programs available is the FHA 203(k) program for home buyers that want to buy homes in less than perfect condition.
The FHA financing programs have allowed many first-time homebuyers over the last two years to achieve their dream of homeownership with its minimal down payment of 3.5% and low interest rates.
The FHA 203(k) financing program will include the cost of the repairs into the mortgage financing. The down payment will be calculated based on the acquisition costs plus the cost of the repairs.
To qualify for this program the property must be eligible. Some of these requirements include:
· 1 to 4 family residence
· completed value must be sufficient to support the purchase and complete the rehabilitation cost
· the property must be 100% complete and at least one year old - partially built homes and unfinished new construction are not eligible
· the FHA appraisal needs to identify and "as is" value and also "subject to improvements" value.
For more information, please give me a call.
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The opinions and general information in this blog are soley those of Kathy Sheehan. Specifics regarding an individual case should be discussed in detail with a loan professional. For a confidential consultation, please feel free to contact me via phone or email. All terms and conditions are subject to change.