Mortgage Blog

Not all lenders are approved by FHA to offer FHA 203k loan financing, because FHA programs are more complex than traditional conventional mortgages. Whether a homebuyer wants to buy a home, or purchase a multifamily property as a owner occupant, if in need of up to $35,000 for repairs, or upgrades, buyer's should meet with a lender approved by the FHA and experienced working with FHA 203K loan program. The FHA lender will help borrowers learn what they qualify for and what repairs or improvements are eligible under the program.

It also helps to find a real estate agent that understands the 203k program when viewing properties to purchase. A knowledgeable real estate agent experienced in negotiating foreclosures and helping homebuyers select properties that are eligible for the repairs and upgrades will help make the FHA 203k home buying process run smoother.

To have a successful closing, homebuyer's must remember that they should not buy large items, or run their credit cards up, during the home buying process. Homebuyers should not purchase furniture, televisions, and cars until after closing on the home. They should not change jobs or quit a job. Try to keep your financial picture the same as when you applied for your loan.

FHA 203k streamline loan is a great option for buying bank owned properties. Homebuyer's can get one loan that includes funds they need to buy a home and fix it up. The repair/upgrade funds are placed in an escrow account and released as the work is completed. The down payment is minimal of the total cost and homebuyers don't need perfect credit. More detailed information can be obtained by going to: HUD FHA 203k or FHA 203k Streamline .

*As of 11/21/11 30 year fixed rate is at 4.125% (APR 5.049%) is not an offer to extend credit. Rate subject to change without notice.