5 Questions from Redding California on Buying a Fixer Upper with FHA Loans

5 Questions from Redding California on Buying a House with FHA Rehab Loan

The FHA loan called 203k fills an important need for many homebuyers, when buying a home that needs repairs or fixing.

This Rehab loan enables home buyers  to finance both the purchase price of the property and the cost of its repairs through a single loan transaction.

Saving time and money.

Some common questions about the 203K FHA Rehab loan are...

• Can an investor use this repair loan program to buy a rental house?

No.. This specialized loan is for owner occupied property only, in hopes of allowing more people to own their own home. This is not to purchase rental or income producing property.

Although the home buyer may purchase a duplex, tri plex or four plex IF the buyer is going to occupy and live in one of the units as a primary residence. This will classify the property as owner occupied.

• I already own a home but want to buy another and move in to it, Do I qualify?

No..This program is for FIRST TIME HOME BUYERS only. A first time home buyer is someone who has not owned a home in the previous three years.

• Can a home be converted to provide access for a wheelchair?

Yes..Many times families looking for wheelchair accesable homes have difficulty find a suitalbe one, but there are some homes with slight modifications that would work. This loan greatly opens the door to offering more homes available to people that may need wheel chair ramps, bars, lifts or widers door ways.

•  How much time do I have to complete the repairs?

The work must begin within 30 days of the close of escrow and the work must be completed within six (6) months from the close of escrow. There are no extensions.

And the number one questions for the 203K FHA Rehab Loan is..

• What happens if the cost of the repairs increases once we begin construction? Can I increase my loan amount to cover the new expenses?

NO..This can not be emphasized enough, that the contractor that you use to estimate the cost of repairs and improvements MUST but be accurate. Any additional costs that may come up during the rehabiliation the home buyer must pay for themselves.

This Rehab FHA Loan is a great program for the many Redding California homes in need of TLC as long as the borrower has educated themselves and the right expectations. For further information check out Rehab a Home w/HUD's 203(k) 

LOOK HERE > Fixer Homes in Redding That May Qualify for FHA 203K Rehab Loan