The FHA 203K Rehab Mortgage Loan Is It Right For You?

The FHA 203K Rehab Mortgage Loan Is It Right For You?

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In the Rapid City and greater Black Hills area, there are a number of homes that may need improvements to qualify for conventional, VA and FHA mortgage financing. If the owner is selling the home “AS IS”, like foreclosures, estate sales and homeowners that are just adamant about not doing anything to get it sold, this can be a problem.

The FHA 203K Rehab Mortgage Loan Is It Right For You?

The FHA 203K Rehab Mortgage (streamline) loan can be a solution. It allows you to buy a home, without the repairs being completed and then to do up to $35,000 in repairs after you take possesion.

The thing is, most of the homes that are in need of repairs, to qualify for financing, only need a fraction of the cost that the “FHA 203K Rehab Mortgage” allows. The most common problem that we see, in Rapid City, that throws a home out of conventional mortgage financing, is a bad roof, due to hail damage. The home may be in excellent condition, other than this one discrepancy, but that is enough to disqualify it for most loan programs.

So don’t feel that you need a home that is one wind gust away from falling down to take advantage of the FHA 203K Rehab Mortgage. It is here for you, when you find that deal that is just too good to pass up, you don’t have cash and other loans just won’t work.

It is strongly advised you hire a real estate agent who is well-versed in the 203k process. Buying a home can be a stressful time, but with this type of loan, that anxiety can be overwhelming, unless you have the right guidance. A Realtor that is experienced with rehab loans, can set up your expectations and walk you through, step by step, items as they need to be completed and align you with competant professionals.

The FHA 203K Rehab Mortgage Loan Is It Right For You?

The FHA 203K Rehab Mortgage requires that two values be determined on the property. One “AS IS” and the value of the home, after the work has been completed. The bank will require 2 appraisals to be done, but prior to you making an offer and spending money, your real estate agent will need to know the market and be able to determine these numbers for you. You will submit your initial offer, based on this information.

The FHA 203K Rehab Mortgage Loan Is It Right For You?

If you need a real estate agent, Jim Whittaker has over 30 years of experience, which includes many rehab loans, one closed successfully, just last week. Contact Jim today 605-858-0775

To get more details on the FHA 203K Rehab Mortgage loan, contact Tanner Oman 605-430-7472, New Penn Financial.

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