Georgia FHA 203k Program Highlights
The FHA 203k streamline loan has become fashionable with the decline 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 mortgage 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 loan?
The FHA 203k streamline program is a restoration loan that works much like a development loan. The buyer of the home is able to purchase a home that is in need of repairs and is able to finance the repair work in the mortgage to correct items in the house. The FHA 203k loan consists of the purchase price of the home plus the construction costs for the work to be performed after close.
One Possible FHA 203k Example:
- $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. Do not 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 the FHA 203k loan harder to qualify for?
The requirements to qualify are the same as a traditional 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 able to qualify, but those are the general highlights.
How do I go about contracting the work?
It is really useful that you work with a general contractor that can perform all needed repair work. Your loan officer can easily help recommend one – they will need to know at least one good contractor. It is also crucial that the contractor be seasoned in FHA guidelines so that they can include any FHA required items in their contract.
Georgia FHA 203k Mortgage: Get More Information
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.