If you are remodeling your home, need funds to rehab your property or refinance because you are expanding your single family home – then a 203k FHA Construction Loan could be what you need. The advantage of the 203k Loan is that one loan can help the homeowner with all of the construction and renovation projects, whereas other types of construction loans would require multiple loans.
203k FHA Construction Loan Benefits
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FHA Construction Loan is a government loan used to reduce costs, and application requirements are relaxed; this allows for some of the fees to be included in the loan. The construction loan is flexible; designed for a single family home, it can be adjusted to support up to four different units, as long as all belong to the same homeowner. The construction loan can also be used towards refinancing, remodeling, or both. A single 203k Construction Loan can take the place of having to get multiple mortgage and loan applications.
203k FHA Construction Loan Amounts and Costs
FHA construction loans vary by individual and by project. If you are fixing your current home or if you are purchasing a home and want to remodel it because it is an older house, this loan can be applied. The amount of loan qualification can vary based on the purchase and how much renovation / remodeling is required for the property.
Construction Loans are affordable, and monthly payments can not exceed 30% of monthly household income.
FHA Lenders and Loan Applications
We are able to provide you up to $203K in FHA construction loan if qualified. We have experience processing these FHA mortgage loans for many clients all over USA. The loan process paperwork depends on the lender and documentation requirements will vary from lender to lender, however, we help get all of the necessary information required to get your qualified and getting you the FHA Construction Loan you need for your renovation home project.
FHA Construction Loan Application Requirements
FHA construction loan requires much of the same personal data as any other major home loan. For example, applicants must submit information on current loans, income level, and financial holdings, as well as all information about the property being remodeled. Lenders will also check applicants’ credit ratings, though the credit score requirements for FHA loans are a bit more relaxed than those of private lenders. One low score, for example, will not preclude a person’s ability to receive an FHA construction loan—although bankruptcy and mortgage defaults might.
FHA 203k Contractors
In addition to selecting one of several FHA-approved lenders, once homeowners are approved they must also choose a certified contractor. Contractors must be approved by lender. 203k Home Remodeling is a resource to help clients through the process of home renovation under FHA construction stipulations.