Do you want to perform major home renovations on your existing home, or would you like to buy a home and remodel it to your exact specifications? Now you can use an FHA mortgage to do exactly that.
Some of the general guidelines for FHA 203(k) mortgages are as follows:
• No cap on the total value of renovations.
• Purchase or refinance.
• Loan amounts up to 110% of value after repairs.
• No payments for up to 6 months while repairs are being completed.
• 3.5% down payment may be a gift from an immediate family member.
• Credit scores down to 580.
• Borrowers with no credit score due to insufficient credit history allowed.
• Seller may pay buyer’s closing costs and prepaid items up to 6% of the selling price.
• Late payments allowed during past 12 months with automated underwriting approval.
• SFR, PUD, condos, and 2-4 units allowed.
• Primary residence only. No second homes or investment properties.
• Non-occupying co-borrowers allowed (must be related to borrower).
• DTI of up to 50% allowed with automated underwriting approval, and up to 31/43% if manual underwrite required.
• No prepayment penalty.
If you or anyone you know needs an FHA 203(k) mortgage, call Lenderline at 1-888-661-7888 or go to www.lenderline.com for more loan programs.
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