FHA 203k is a loan program subsidized by the department of Housing and Urban Development (HUD) for real estate requiring rehab. The program enables home buyers to purchase a property with the cost of repairs included. Typical financing options require that properties be in livable condition. FHA 203k is a great program for short sale or foreclosed homes and are significantly diminished due to condition to purchase them. The program is an important tool for extending home ownership, revitalizing neighborhoods, and for making homes healthier for those who occupy them. NH FHA 203k financing guidelines on funds for repairs, eligible renovations, and advice on purchasing NH homes with FHA 203k can be found below.
Funds For Repairs
The amount of approved repairs is limited by the type of 203(k) loan and maximum FHA loan limits for the area. A minimum amount can also apply. All figures must be supported by estimates from professional contractors. The property must also appraise for the total amount of the home loan, which includes the initial contract price of the property plus the amount of the repairs, so the buyer is in essence rolling in the cost of work into the home loan. When the property and loan closes, the repair money may be placed into an escrow account and released as work is completed. Renovations should be executed by professional contractors and with necessary permits. With approval, home owners can address some of the items on their own. Inspections may be performed by HUD to verify compliance. The buyer must intend to occupy the home as a primary residence. Multi-family and condominiums are allowed but with certain restrictions (properties used strictly for investment do not qualify in most cases). Below are more NH FHA 203k financing guidelines.
FHA 203k Eligible Renovations
Understanding eligible renovations is important. FHA 203k repair funds can be used for a wide range of items. Major items include heating units, cooling units, insulation, roofs, windows, doors, and appliances. Work under some categories include strict guidelines for quality and/or energy conservation. A few cosmetic-type repairs such as painting and flooring can also be granted. This is only a short reference of the list. The full list may be obtained from HUD or from a local FHA 203k approved mortgage provider. Always obtain a recent list as the information may change.
Purchasing NH Homes With FHA 203k
Fully understand the program and options. Request a pre-approval in advance of making an offer on a residence that would need this type of loan. Local mortgage companies that offer general FHA products are not necessarily approved to offer 203k loans. Interest rates and other factors may deviate from traditional FHA and conventional mortgages. Consult with a professional on this program and compare it to other options available.
NH FHA 203k Financing Guidelines Disclosure
The above NH FHA 203k financing guidelines relating to funds for repairs, eligible renovations, and purchasing NH homes with FHA 203k is provided by Donna DuFour at Accurate Title and is meant to be a basic introduction to this program. It does not discuss every restriction or option and is subject to change without notice. Refer to the HUD Website for additional facts or contact Donna at 800-639-4405 or email@example.com.