Why Are California FHA 203k Rehab Loans Different?
Homes in the state of California are one of the highest priced in the nation, if not the highest. Average market value of homes in California are way above the national average market value of comparable homes in the United States. Some of the highest priced homes are in San Francisco, Los Angeles, Irvine, Sacramento, San Diego, Modesto, Santa Barbara, San Bernandino, and other counties. Most areas in California are classified as high cost areas where the FHA Loan Limits are substantially higher than the standard $271,050 FHA Lending Limit. California FHA Loans have loan limit as high as $625,500 in high cost counties for single family homes and one unit properties such as condominimiums and town homes. California FHA 203k Rehab Loans are different thant FHA 203k Rehab Loans because most areas in California, they are classified as high cost areas so the maximum FHA Loans Limits are higher for California FHA 203k Rehab Loans than the rest of the United States.
Streamline California FHA 203k Rehab Loans
A streamline California FHA 203k Rehab Loans are an acquisition and rehab mortgage loan all in one loan and one mortgage loan closing. The FHA 203k Rehab Streamline Loan is different than the full California FHA 203k Rehab Loan because the maximum construction budget is capped at $35,000. There are also restrictions on the scope of work you can do with a FHA 203k Streamline Loan. You cannot make structural changes such as room additions or changing the main structure of the home. You can do just about everything else such as remodel your bathroom, kitchen, bedrooms, family room, attic, basement, and other parts of your home. You can also remodel the exterior of your home such a new roofing, siding, windows, and gutters.
Full California FHA 203k Rehab Loans
California homeowners can now take advantage of the full California FHA 203k Rehab Loan where you can just about do anything to your home including structural changes and room additions. With a Full California FHA 203k Rehab Loan, there is no maximum loan amount. As long as your home appraises on the future value after the work has been done, you are good to go with a full FHA 203k Rehab Loan as long as you do not exceed the maximum California FHA Loan Limit for your county. Again, many counties in California have FHA Loan Limits capped at $625,500. If you need what the maximum California FHA Loan Limit is for a certain county, contact us at Gustan Cho Associates at email@example.com or 262-716-8151. With a full California FHA 203k Rehab Loan, a homeowner can do room additions, second story additions, new kitchens, new bathrooms, new appliances, new mechanicals, new windows, new roofs, new porches, new siding, and pretty much anything they choose.
California FHA 203k Rehab Loans Requirement
Gustan Cho and his Associates are California FHA 203k Rehab Loans Mortgage Lenders and do not have any overlays on California FHA 203k Rehab Loans. Whatever the federal minimum mortgage lending requirements are for California FHA Loans are what it is for California FHA 203k Rehab Loans. Minimum credit scores for a 3.5% down payment California FHA 203k Loan is 580 FICO. The 3.5% down payment required is on the after improved value of the home the home buyer is purchasing. If you are a California home buyer and would like to learn more about California FHA 203k Rehab Loans, contact us at Gustan Cho Associates at 262-716-8151.
No Lender Overlays On California FHA 203k Rehab Loans
We have no lender overlays on California FHA 203k Rehab Loans. 580 FICO is minimum credit scores required for a 3.5% down payment California 203k Rehab Loans. Maximum debt to income ratios are capped at 56.9% DTI back end on California FHA 203k Rehab Loans. Charge offs and Unpaid Collection accounts are okay and do not have to be paid off to qualify for California FHA 203k Rehab Loans. Medical collections are exempt and do not have to be paid off and are not calculated in debt to income ratio income calculations. Non-Occupant Co-Borrowers are allowed for home buyers not qualifying for income or self employed borrowers with a lot of unreimbursed expenses.