 Overview of FHA 203k Rehab Loan Frequently Asked Questions
The following was a general overview of the Frequently Asked Questions of the FHA 203k Rehab Loan Program and a guide to figure out if this is the loan program for you.
Availability: Available in all areas.
Type of Homes they finance: Most property types. Single Family Properties, Site Condos, Multi-Family Properties, Modular, Stick-Built, BOCA-Code, large parcels, and some unique properties will qualify. Attached Condominium Properties are acceptable if they are approved condominium projects. You can contact us to check on approved condominiums. Manufactured properties do NOT qualify.
Down Payment Required: 3.5% based on your total amount borrowed. Any down payment can be a gift from family, friend or employer.
Mortgage Insurance: 1% financed into your loan, monthly mortgage insurance is required equal to 1.15% of your loan amount for the year, paid monthly.
Interest Rates: Little variance between lenders, though some shopping may still be required.
Maximum Loan Amount: Normal FHA Loan Limits Apply. Most Michigan counties are limited to less than $272,000.
Income Limits: No Income Limits
Credit Requirement: 640 FICO with minimum credit requirements, though this may vary by lender. 36 months from Bankruptcy or Foreclosure with 3 reestablished lines of credit (no late payments allowed since the bankruptcy.)
Reserves: No reserves required.
Repair Escrow: Available on all properties with contingency plan.
General Overview: Easy qualifying with 640 FICO score, low down payment, you can choose your own Contractor to do the repairs..
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