FHA 203k loans are provided in cases where the property you want to purchase in Houston may need repairs or rehabilitation. These loans will enable you to arrange for finances to attend to the needed repairs. Borrowers could expect the sale price amount and add the cost of repair estimates to that. The maximum amount that you can get under a regular 203k loan is the lesser of 110% of the estimated property value or the as-is value of the concerned property with the added cost of repairs.
203k Loan Eligibility
The properties that are eligible for an FHA rehab loan are the single family to four-family homes which have been completed for at least one year. There is a possibility that you may have liked a place whose existing base structure is perhaps in good condition but the building looks rather torn down. What really matters is that the property has to qualify for an FHA approval under the home loan requirements established by the Federal Housing Administration.
The terms that have been set aside for FHA 203k loans are for fifteen and thirty years. Most borrowers under this plan may feel that the thirty-year term may work out beneficial for them due to the lower and easy monthly instalments.
Repair and Mortgage rolled into one plan …show more content…
It could also be a scenario where you may have saved some funds for the purpose of remodelling a house and you may just have come across a house you like; but, your financial lender may feel that before you buy it, you have to make it habitable due to its run down status. There are many properties like these in the real estate market in Houston where they were not maintained properly by their former owners who may have been strapped for enough cash. Some properties may have been treated in a poor state by the ones renting them out. Such properties are a sure choice for 203k loan