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*** CLICK HERE TO JOIN US FOR AN INFORMATIONAL SEMINAR ON 203K LOANS***
A 203k loan is a type of mortgage loan that will allow you to purchase a home and rehabilitate the home right away. The FHA 203k loan program allows home buyers to repair aspects of the home after closing, holding the funds designated for the repair at closing. The funds are held in escrow until the contractor has completed the work, the property inspected and the contractor is then paid out of the escrow rather than out of the home owner’s pocket. This loan program truly does offer options to home buyers who would not be able to afford the repairs otherwise.
Qualifying for a 203k loan is similar to qualifying for a FHA mortgage. The minimum down payment will equal 3.5% of the total of purchase price plus the cost of the repairs/rehab. The maximum purchase price is $365,000. Minimum credit score is 640 unless you qualify for the CASA program as well, which would allow for a minimum credit score of 620. Down payment assistance and closing cost assistance programs for first time home buyers can be used in conjunction with the 203k loan if the first time home buyer meets the guideline requirements. First time home buyers could be eligible for up to $15,000 in closing cost assistance and down payment assistance through additional programs.
To learn more about the 203K loan process, Cornerstone Mortgage Company hosts a monthly seminar to inform prospective buyers about the process. It is a free, no-obligation informational meeting that takes place on the first Tuesday of each month from 6:30 to 8pm.
To register for the seminar, please click here.
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FHA 203k loan program was a great thing indeed, just wish it was still around.
Thanks for the comment Andrew! Your wish is our command, we close a number of the FHA 203k loans each month. With the large number of bank owned properties on the market right now, many of our clients are able to secure financing for homes that need a little fixin’ up that otherwise wouldn’t pass FHA property standards. Let us know if you have specific questions we can answer for you!