FHA 203k Loans

What is the FHA 203k Loan?

When buying a home most buyers have a list of things they want to do to the house once they have the money.  For example remodeling the kitchen and bathrooms, finishing the basement, repairing the roof.   Because most buyers do not have the money to do these repairs, FHA launched the 203k program which allows a buyer to roll in the cost of repair(s) into the loan. 

Maximum Money

With the FHA 203k program, you have the access up to the total loan amount you qualify for or $406,000 (FHA Loan limit for Denver County) for repairs/rehab work on the primary residence you purchase.  Yes, this even allows for you to buy a house, scrap it and rebuild a fully customized home.

Eligible Properties

· 1-4 unit properties

· Must be a primary residence, no investment properties.

· Can turn a 1 unit into a 4 unit property

·       You do not have to be a first time home buyer, you can obtain FHA 203k financing multiple times.

Qualification

· 620 Minimum Fico Score

· Bankruptcy must be discharged 2 years ago

· Foreclosure must be 3 years ago

 Down Payment

· Minimum Down payment of 3.5% Can be used in conjunction with CHFA, allowing down payment to be less than 1%

· 30-45 days from contract date, depending on complexity of project

· Project must be completed within 6-12 months after the closing date

· As a division of Universal Lending, we are a full service banker with in house underwriting and funding.

· Very few mortgage companies have been approved to offer the FHA 203k Loan and even fewer of these companies will underwrite these loans onsite.  If you are using a lender that does not have onsite underwriting it could take up to 12 weeks to close this type of a loan. 

· Please call/email Jocelyn Predovich, Senior Mortgage Consultant of Limetree Lending Group (Division of Universal Lending) for questions on the 203k loan.  Phone: 303-325-3578  jocelyn@limetreelending.com

 

 Repair Ideas

 

· Upgrade Kitchen Upgrade Bathroom(s)

 

· Painting Interior/Exterior Finish Basement Replace Carpet·

 

· Replace Windows Replace HVAC

 

· Replace Roof Replace Plumbing  Replace Electrical 

· Repair Structural Issues  Septic System/Well Replacement