Florida FHA 203k Loans Mortgage Guidelines On Home Purchases
This BLOG On Florida FHA 203k Loans Mortgage Guidelines On Home Purchases Was Updated On November 19th, 2018
Gustan Cho Associates are experts in Florida FHA 203k Loans.
- Florida FHA 203k Loans require minimum credit scores of 580 FICO
- The Gustan Cho Team at Loan Cabin Inc. does not have any overlays on FHA Loans
- We are specialists in originating and funding Florida FHA 203k Loans
HUD Section 203(k) insurance enables home buyers to purchase a home that is in need of rehab.
- HUD 203k Renovation Loans is a combo home loan that includes the acquisition and rehab costs all in one single loan closing
In this article, we will discuss and cover mortgage guidelines on FHA 203k Renovation Loans.
Here Is How Home Purchase Florida FHA 203k Loans Work
Homebuyers can purchase a teardown or home that is not habitable and need in rehab with an acquisition and construction loan:
Florida FHA 203k Loans:
- Lenders require that borrower will need 3.5% down payment on the after improved value
- FHA 203k Streamline Rehab Loans allows a maximum construction budget of $35,000
- There is no maximum construction budget with a full standard FHA 203k Loan
- The maximum loan amount is the FHA Loan Limits
Only one to four-unit owner occupant properties is eligible for 203k Loans.
Here Is How To Refinance Florida FHA 203k Loans Work
Current homeowners that need a rehab loan can do it with an FHA 203k Loan.
Here is how it works:
- The current loan will be paid off with the new FHA 203k Loan
- There is a construction budget reserve
- Once rehab is complete, the Loan will be a 30 fixed-rate mortgage FHA Loan
- No need to refinance again unless the homeowner can get a net tangible benefit
Construction And Acquisition Loans In Florida
Gustan Cho Associates has several types of Acquisition and Rehab Loans available in the state of Florida:
- Florida FHA 203k Loans
- Fix And Flip Loans
- Hard Money Loans
Florida Fix And Flip Loans
Gustan Cho Associates has fix and flip rehab loans.
Here is how fix and flip rehab loans work:
- 15% down payment on home purchase
- 90% financing on rehab costs
- 9 months interest only
- For investment properties only
Here is how hard money loans with rehab costs work:
- There are two types of hard money loan programs: Owner occupied and non-owner occupant investment property loans
- 25% down payment on a home purchase and 25% down payment on rehab costs
HUD Section 203(k) Mortgage Insurance
Under HUD Section 203(k) Mortgage Insurance, homebuyers can purchase a home that is not habitable. This includes foreclosures and can obtain an acquisition and rehab combination mortgage loan called FHA 203k Loans. When purchasing a home that needs rehab, buyers normally have to abide by a process streamlined by HUD.
There are two types of 203k’s:
- 203k Streamline which is a maximum construction budget of $35,000
- Full Standard 203k Loans:
- No construction budget limit
Here is how it works
- With Streamline 203k, homeowners cannot do any structural changes or room additions
- Full Standard 203k, homeowners can do cosmetic, structural, and room additions
Florida FHA 203k Lenders
HUD 203k mortgages offer homeowners to have an acquisition and construction loan with one loan process and closing with a low down payment.
- Home buyers of fixer uppers can now purchase a home in need of rehab and do a complete gut rehab with only 3.5% of the after value of the home
- Most construction lenders require 30% or more equity but not with a HUD 203l rehab loan
Basics Of HUD 203k Loans
The type and extent of the construction covered by Section 203(k) mortgage insurance range from minor cosmetic repair to a full gut rehab construction project. Only one to four-unit residential owner-occupied units qualify for this program.
The types and scope of construction that borrowers qualify in using Section 203(k) financing include:
- Structural changes and room additions
- Updating the home externally and internally
- New appliances
- Updating home with health and safety defects and hazards
- Cosmetic repairs which include replacing roof, siding, windows, gutters, and other cosmetic features
- Minor and major plumbing, electrical, HVAC, and septic/well systems
- Refinishing and/or replacing floors, millwork, kitchens, bathrooms, and basement remodeling
- Minor and/or major landscaping and lot improvements
- Handicap access to home: Exterior and interior
- High-efficiency energy systems
Home buyers who have any questions on FHA Rehab Loans, please contact us at Gustan Cho Associates at 262-716-8151 or text for faster response. Or email us at email@example.com.