Real Estate Ann Arbor

Fha 203k Purchase – Steps Every Buyer Should Know About The 203k Loan

Currently there are many Home Buyers who are interested in purchasing a home with the FHA 203K but unfortunately there aren’t many Real Estate Agents that are aware of the program or feel comfortable doing the transaction, and most Mortgage Lenders either can’t, won’t, or are just not familiar enough to do them. This article will cover an overview on the FHA 203K Application process when using a 203k Loan to purchase a property in California.

Knowing what to expect and what is required will help you keep your Agent on track and help you prepare in advance for the steps to be taken to efficiently process your transaction and limit delays. You might also want to refer your Real Estate agent to this guide to help them get a better idea of the 203K transaction if they’re not familiar with the program.

Before we get into these steps you must know there are two types of 203k loans that you can use to buy & fix up a property. There is the Standard 203K and then there is the 203K Streamline. So what’s the difference?

A 203k Streamline – can be used for rehab & repairs up to $35k and a Contractors bid is all that’s required.

A Standard 203k – can be used for major improvements over $35k and a “Cost Consultant” is required along with a Contractor’s bid.

Now let’s get started.

Step #1 Selecting a Property (Home Buyer)

The property can be a Single Family Residence, 2 to 4 units, Condo or PUD. There are different maximum loan limits that apply and will vary depending on what county the property is located and whether it’s 1 to 4 units.

Step #2 Making the Offer (Home Buyer and Real Estate Agent)

This is where You and your Real Estate Agent take out a pencil and paper or calculator and figure out the purchase price that you are offering the seller while taking into consideration the amount of money needed for repairs which will be added to the purchase price.

If you have a chance to meet with your contractor before putting in the offer that would be helpful, unless you have a pretty good idea of how much money will be needed to bring the property up to an acceptable standard or beyond. Keep in mind of what the future value will be after rep
1000
airs and that the new loan amount will be based off of the purchase price plus repairs or 110% of the after improved value whichever is less. The offer you make to the seller is the “As Is” price that means you are making an offer on the property in its present condition and that is the only price that concerns the seller.

Step #3 The Offer is Submitted (Real Estate Agent)

What should be in the offer:

This step is your Real Estate Agent’s responsibility but it’s good for you to know so you can review your offer and know what to look for before your Agent submits it to the Seller. The Offer / Purchase Contract should mention that an FHA 203k Streamline or a Standard FHA 203k will be used for financing. >>>>

By: Marvin Hernandez

Article Directory: http://www.articledashboard.com

* * Continue Reading this Article Here and receive the FHA 203K Buyer’s Guide

* * View the FHA Loan Limits Here

If you have any questions about what you just read feel free to contact Marvin Hernandez at (888) 788-9398 x 203 or post your question at www.203kMortgageLender.com/blog

Click the XML Icon Above to Receive Mortgage Articles Via RSS!
Additional Articles From – Home | Finance | Mortgage

Are mortgage loan modifications able to reestablish financial security?
Are mortgage loan modifications able to reestablish financial security ?
Three Reasons to use a Mobile Home Loan Broker
Stop Foreclosure – So What is a Mortgage Loan Modification and How Does it Work?
Getting the Lowest Possible Mortgage Rates
Tips On How-To Refinance Mortgage
Avoid These Refinancing Mistakes
How to Modify Your Mortgage When Unable to Meet the Requirements
Is There a Reason Not to Move Out Due To Foreclosure?
Refinance and consolidate your debts

Technorati Tags: real estate buyer

Tags: real estate buyer