Florida FHA 203k Program Highlights
The FHA 203k streamline loan has become fashionable with the downturn in the housing market. When a property is owned by the bank or investment company, chances are that the property may be in need of a little work and the FHA 203k streamline program is a great option.
Some of the frequently asked questions we see about the FHA 203k streamline program include:
What is the FHA 203k mortgage?
The FHA 203k mortgage is a rehab loan that works much like a construction loan. The one who is buying the home is able to buy a home that is in need of repairs and is able to mortgage the repair work in the mortgage to fix items in the house. The FHA 203k consists of the purchase price of the home plus the construction costs for the work to be performed after close.
An FHA 203k Example Situation:
- $100,000 purchase price of home
- $20,000 Repairs Needed (see a list of the most common FHA 203k repairs)
- $120,000 Total Loan Amount
How much do you write the contract for a FHA 203k sales contract?
The offer is the purchase price of the property only. You don’t want to include the cost of repairs anywhere in the sales contract or offer. In the above example, the purchase price on the sales agreement or offer would be $100,000.
Is it easier or harder to qualify for an FHA 203k loan vs. a regular FHA loan?
Getting an FHA 203k loan is roughly the same as getting a regular FHA loan. What does it take to qualify for an FHA loan? Generally speaking, a credit score above 620, a good job and a down payment of 3.5%. Of course there are more details to being approved, but those are the basic requirements.
How do I go about contracting the work?
It is encouraged that you work with a general contractor that can perform all needed repair work. Your loan officer can easily help recommend one – they really should know at least one good contractor. It is also really important that the contractor be practiced in FHA guidelines so that they can include any FHA required items in their contract.
Florida FHA 203k Loan: Ask The Experts
Getting help with your FHA 203k loan locally is easy, simply get started below and completing your information. A FHA 203k expert will be in touch and be able to answer all of your questions.