So if I buy a home that needs renovations would I take out an FHA 203k loan as my loan?

If you are thinking that the home you want to buy is going to need renovations, you need to meet with your Loan Originator and the 203K specialist prior to making your offer. The proposed improvements need to be reviewed and included in the plan before the loan is made. I would recommend you work with a local Mortgage Banker. Make sure they are certified as 203k specialists. Although they are not difficult, it's amazing how easy it is for an amateur to screw one up so you don't want an amateur cutting his/her teeth on your 203k. Look for a great Loan Originator that specializes in 203ks, The National Association of Mortgage Professionals. You can find one that serves your area at www.NAMB.org. Use the Find a Mortgage Professional search engine found on the right hand side of the front page. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

If the estimated repairs are under $5000, then an escrow holdback is all that is necessary, and you wouldn't have to pay the exurbanite fees' associated with a 203K rehab loan.. if the repairs would be greater than $5000, then you will have no choice but to go 203K.. keep in mind that most lenders charge a premium for 203K rehab loans.. meaning the rate will be higher, and FHA mandates that you use a qualified FHA consultant, which comes at a fee from $500 - $2500, and all the repairs must be performed by licensed, insured contractors.. My suggestion is that if you can find a home that does not need a bunch of repairs, go with that one.. although on the surface, 203K's are done every day, they are not easy to do, the closing time is extended, and guidelines can make things hectic and annoying.. it's also possible that if the sellers agent is familiar with 203K's, they might reject your offer because they know about the potential problems associate with this type of loan product.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

It really just depends on the amount of money to complete the repairs. If that amount is greater than $5000 than yes. I would recommend the 203k loan.

Hi, I am in Ohio, I do 203K loans and can be a resource for you if want to talk. I am licensed for all of Ohio but live in Cincinnati. I am doing (2) 203K loans right now so can be very helpful. If you need to do $5K in repairs and they are not structural; then you can do a streamline FHA loan. you take the purchase price plus bids of work you want to have done plus 10% reserve and that becomes your new sale price. Then you have to put 3.5% down of this total amt. The house has to appraise for the total improved value. You can reach me at 513-602-5498 which is my cell or www.FindOhioLoan.com. The 203K loan can be a great tool if used properly. It is a very reasonable way to do improvements to a house all at once.

The FHA 203k loan gives you extra money to fix up the property, and would be a good choice.

Hello -- the comments so far have been good, they are trying to give you general information -- to better understand the 203(k) program, you might want to read the HUD page about them: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou Then find a local licensed mortgage professional who has done some of these loans and sit down and talk to him about the process, beforegoing much further. In some cases, some of the FHA 203(k) lenders have overlays as to how much above the current value of the property they will lend (i.e. they may not allow more than 30 or 35% of the initial value for the renovations -- so, using simplistic figures, if the property were selling for $100,000, they might not allow a $40,000 renovation to it (or they may). You need to check it out.

You can, but you need to speak with a local mortgage pro to discuss the renovations needed as FHA only allows certain improvements.Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation ask for Michelle or Benny. We will find the Best Mortgage Option to suit your needs! Check us out at www.BestMortgageOption.comAsk us about the awesome discounts we offer heroes as a Homes for Heroes affiliate!

If you decide to go with a 203K FHA Loan you have 2 options: Min repairs must equal or exceed $5K1. if the repairs are $35K or less and not structural in nature , you can do an FHA 203K streamline. (no 203K consultant required)2. If the repairs > $35K or are structural in nature , you must go with a Full FHA 203K which includes having to get a 203K HUD consultant. (not a bad thing, just additonal costs)The homeowner or purchaser can decide to do any repairs or upgrades beyond the required repairs using an FHA 203K Program as long as the client qualifies and the loan is equal to or < the county FHA loan Limits.The loan is simple enough, just requires more time since obviously you will need the licensed contractors estimate for the work to be completed and if you have a 203K HUD consultant, you will need their work write up as well.Ernesto Marez emarez@thefederalsavingsbank,com

An FHA loan would be a good loan for you if you are planning on making repairs on the property. You will need to provide a plan of these repairs when submitting your loan application. These plans will be reviewed before the loan is approved. One thing to keep in mind is that you will have to be making necessary repairs with the funds. They cannot be used to add square footage to the home or add a swimming pool for example.

Generally speaking, the FHA 203k Loan allows you to buy it, and fix it, all in one loan. It is pretty cool, but there is a lot to know and understand. Contact an FHA 203k specialist in your area for a review of your personal situation. I can do 203k loans in MN and WI. Visit my 203k loan page at http://joemetzler.com/203k_in_MN.htm