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FHA 203K

Terribly in Need for Repair? Go for FHA 203K Loan

fha-203k1If you’re purchasing a previously-foreclosured house, then you may have heard of the FHA 203K Streamline refinance loan or the FHA 203K Standard loan.

The FHA 203K Streamline Refinance Loan is an FHA refinancing program that allows you who buy a house or having a house that is in need of repair. The FHA 203K Streamline program will help your FHA refinancing option as well as the FHA new home buy option.

Differences between FHA 203K Streamline and FHA 203K Standard

The FHA 203K Streamline program is gaining popularity due to its ability to give repair cost ranging from $5,000 to $35,000. Thus, the total mortgage loan will permit for property acquisition with up to $35,000 of the loan proceeds to be applied toward repairs or property rehab. Meanwhile, the FHA 203K Standard loan allows larger expenses (more than $35,000) for repairs that requires more major works. Here are some of the repairs by the FHA 203K Standards:

  • Structural improvements: room additions, re-wiring, major landscape work, patios, decks, terraces, energy conservation improvements, steel insulated exterior doors, rehab or improvement of a detached garage.

People who buy houses that need repair or those whose current houses are in need of repair, have tried the FHA 203K Streamline. The FHA 203K Streamline program is different from the standard Section 203K loan due to its total loan amount, and it is available for either a new home buy or a refinance.

If you’re interested in taking an FHA 203K Streamline program, then you may as well know what repairs do they allow. These are some of the common repairs:

  • Repair rain gutters and downspouts
  • Repair/upgrade of existing HVAC systems
  • Minor repairs of plumbing and electrical systems
  • Minor repairs of existing flooring
  • Minor remodeling that does not involve structural repairs
  • Exterior and interior painting
  • New appliances – items such as free-standing ranges, refrigerators, washers/dryers, dishwashers and microwaves but may not be greater than $2,000
  • Improvements for people with disabilities/handicaps

Some highlights of the FHA 203K loans are:

- You’ll be allowed to finance six months of payments into the loan. Up to 6% of seller contributions are allowed on buy loans.

After seeing what benefits you can get by applying for the FHA 203K Loan, now you can calculate how much it will cost to repair your home. Just remember, although applying for an FHA loan is relatively simple, excellent credit score still make a plus on your resume. So keep in mind to make your credit history clean. Ciao !

Also read: FHA Financing and FHA Foreclosures

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This entry was posted on Monday, March 2nd, 2009 at 2:01 am and is filed under FHA Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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2 Responses to “FHA 203K”

  1. Homes Mortgage Refinance Guide says:
    March 2, 2009 at 4:25 am

    [...] WARNING: FHA 203K right here! FHA 203k Tips & Guide! | FHA Loan Rates [...]

  2. FHA Loan Rates News, President Obama on Refinancing Mortgage | FHA Loan Rates says:
    April 9, 2009 at 3:37 pm

    [...] President Barack Obama said Thursday millions of Americans can save money by refinancing their homes and taking advantage of record low rates on fixed rate mortgages. [...]

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Tags: FHA 203k,  fha 203k loan,  fha 203k loans,  fha 203k standard,  fha streamline,  fha streamline refinance, 

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