Advance NC FHA 203k Mortgage Information

By
Real Estate Broker/Owner with Premier Realty NC

FHA 203k is a loan program sponsored by the department of Housing and Urban Development (HUD) for real estate needing significant work. It enables buyers to buy real estate and finance the expense of work required. Ordinary loans mandate that properties be in livable condition. FHA 203k is a useful option for short sale or foreclosed properties that may not qualify for regular loans. The program is an important tool for extending real estate ownership, improving communities, and for making properties healthier for individuals who occupy them. Advance NC FHA 203k mortgage information (money available for repairs, renovations eligible, and advice on purchasing Advance NC homes using FHA 203k ) is included below.

Money Available For Repairs

The cumulative cost of eligible renovations is restricted by the version of 203(k) loan and regional limits. A minimum amount may also apply. All estimates must be supported by statements from licensed contractors. Furthermore, the home must appraise for the full amount of the loan, which includes the sale amount of the residence plus the amount of the work to be completed, so the borrower is essentially rolling in the work into the loan. When the loan closes, the added money must be deposited into an escrow account and released at different stages. Work must be done by licensed contractors and with applicable permits. With approval, home buyers may complete some of the items on their own. Inspections may be completed by HUD to ensure compliance. The home owner must plan to use the property as a permanent residence. Multi-family and condominiums are allowed but with certain guidelines (properties used strictly for investment will not qualify the majority of the time). The following are additional Advance NC FHA 203k mortgage information

FHA 203k Renovations Eligible

Understanding renovations eligible is very important. FHA 203k repair funds can be applied to many different items. These include HVAC, cooling units, insulation, roofing, windows, doors, and appliances. Equipment under certain categories have strict requirements for energy use and quality. A few cosmetic repairs such as flooring and painting may also be allowed. This is merely a subset of the list. The complete list may be requested from HUD or from a local FHA 203k authorized mortgage company. Be sure to review a current list as the information will change.

Purchasing Advance NC Homes Using FHA 203k

Completely review the program and restrictions. Look into a pre-approval before submitting a bid on a home that would need this form of mortgage. Local lenders that offer general FHA mortgages are not necessarily approved to offer 203k mortgages. Qualification criteria and other factors can differ from traditional FHA and conventional loans. Contact a professional regarding this program and compare it to other alternatives currently on the market.

Advance NC FHA 203k Mortgage Information Disclaimer

The above Advance NC FHA 203k mortgage information regarding money available for repairs, renovations eligible, and purchasing Advance NC homes using FHA 203k is meant to be a general overview. It does not outline every requirement or guideline and may change without notice. Go to the HUD Website for additional facts.

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Topic:
Home Buying
Location:
North Carolina Davie County Advance
Tags:
mortgages
fha
renovations
203k

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Rainer
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R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Hi Debbie:  Thanks for posting this blog on the FHA 203K program.  I just wanted to point out that while it can be a great tool, it doesn't come without it's challeges!

I myself attempted to use the program when my wife and I purchased our house and to be honest, we eventually gave up on it.  Not only did it become EXTREMELY burdensome gathing all of the documentation that they required, it also became pretty freaking expensive!  To the point where we eventually gave up and just bought the house regular old FHA, then went to our credit union for a line of credit to rehab the house.

 

Now, not everybody has the wherewithal to do that and if that is the case, the 203K program can very well be worth it because many times your buyer can secure a much nicer home than they would have been able to if they hadn't been willing to put in the effort to rehab the property.  I'll also say that the program guild lines do an excellent job in making sure that the borrower has their ducks, not to mention their expectations in line with reality.

Anyway, just my two cents worth.  Thanks for the opportunity to comment.

 

Bob

 

 

May 28, 2015 07:31 AM #1
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Debbie Wilkes

Broker/Owner - Serving Davie County & Surrounding
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