203K FHA Rehab Loan
August 16th, 2008 Posted in Local News, Real Estate
This is my understanding of a 203K FHA Rehab Loan, but please confirm with a qualified loan officer.
On the 203K Rehab Loan, FHA will loan up to 115% of appraised value. The percentages are 3% down, 97% financed, and the additional 15% can be used to rehab the property. That means 15% of appraised value can be used to add appliances, paint, fix the roof, whatever… This is a pretty nifty program if you are purchasing a fixer-upper or a REO (bank-owned) property as frequently these homes have been abused before being vacated.
The home has to have a Certificate of Occupancy, be at least a year old, have been occupied during that year, and then the repairs have to be done by a licensed General Contractor. There are 8 to 10 inspections throughout the process amounting to fees between $800 – $1,000, along with all other customary fees associated with purchasing a home, and the home must be owner-occupied by the new owner. Plan for at least a 2-month escrow…
If I can be of any assistance to you in your search for a diamond in the rough or the sale of your current home, please contact me via email, call me at (805) 235-0234 or visit my website for more information on Paso Robles, California real estate.
It starts with a dream…
Tags: 203K FHA Loan, FHA, first-time home buyers, fixer-upper, rehab loan