What is the the FHA 203k REHAB Loan
The FHA 203k Loan is a Rehab loan that allows a borrower to purchase their new home and finance any needed or wanted repairs. Their are two types of FHA rehab loans available. The first is the FHA 203k Streamline purchase or FHA Streamline refinance. The Streamline Rehab loan allows up to $35,000 to be financed along with the purchase of the property. The 2nd type of FHA Rehab loan allows up to unlimited amount of repairs to be done to the property.
What kind of Repairs Can I finance in with my Loan?
- New Carpet
- New Appliances
- New Kitchen Cabinets
- New Windows
- New Fixtures
- New Hardwood Floors
- And much much more
What is the Down Payment Requirement for the FHA 203k Rehab Loan?
The Down payment requirement is the same as a regular FHA loan. The borrower is required to put at least 3.5% of the purchase + cost of repairs down. For example if the borrower is purchasing a home for $65,000 + $35,000 for repairs the borrower would be required to put $3,500 down. The down payment can still be gifted from a family member or relative.
The 203k Rehab loan can help build Equity
I am currently working on 3 of these rehab loans. Each one the borrowers are going to have a significant about of equity built in their new home. The reason is because the borrowers are purchasing homes that are dilapidated in one way or the other. The homes are structurally sound but need cosmetic help with some updating therefore the homes are significantly reduced in price because of the needed repairs. Each of my borrowers will have at least $20,000 of equity after they finish their rehab loan.
If you are looking to finance the purchase a new home in Redding Ca or in California and would like to see if you qualify for a 203k Rehab loan please give me a call at 530.221-7700 or you can get started right away by submitting your loan application.
If you have any questions before getting started you can also give me a call or send me an email.