The FHA is fully committed to increasing home ownership! For that reason, the FHA 203K renovation mortgage program was started to help make certain properties accessible for families to move into and live happily in. Some benefits of an FHA loan include:
203K Loan Requirements - Bring on the Home Improvements!
Did you know that Americans spent approximately $265 billion last year in home renovations alone? Applying for a mortgage, more specifically a 203K renovation mortgage, will enable you to transform your home into what you've always envisioned. A minimum loan value of $5,000 and a variable maximum (not to exceed 100% of the value after the improvements are complete) will help answer the question, How much can I borrow?
A 203K loan is essentially a home improvement loan. The FHA requirements for this type of mortgage make it easy for individuals who want to make home renovations that will increase the value of their home. In addition, FHA 203K renovation mortgages are not restricted to single-family dwellings, but can be used for properties with up to 4 units.
Eligible properties, which fit into 203K loan requirements, are 1 to 4 unit residences, townhomes, condos (interior only), row homes, and HUD (Federal Housing Administration) repos (single unit only). By purchasing a renovation mortgage, you can more easily afford to improve your quality of living.
Renovation mortgages are great because they enable you to fit home improvements into your budget. Details state that improvements can take up to 6 months to complete and the home must be at least one year old.
The 203K loan allows, but is not limited to, improvements such as:
The specific program known as the FHA Streamlined 203K loan allows homebuyers to finance an additional $35,000 into their mortgage to improve or upgrade their home before move-in. It is quick and easy for homebuyers to tap into cash to pay for property repairs or improvements. At MCity Mortgage, Inc., we offer a wide range of rehabilitation loans, as well as energy efficiency discounts! Our representatives are here to speak with you about your eligibility and options.