2011-11-09
Use The FHA 203K Program to Fix Up Your Charlotte NC Home
As a Charlotte NC home buyer, you may have heard of the FHA 203k financing program. It’s a great program to use if you want to purchase a distressed property that needs some work. It can be used for minor renovations such as appliances, decks, roofs, siding and windows. That’s called the Streamline Loan. Or it can be used for major structural repairs.
If you are a Charlotte NC home buyer, click here to read more about purchasing a home with FHA 203k financing.
Charlotte NC home owners can also use the FHA 203k program to rehabilitate their current homes. If you own a home that is in need of renovation, here are some things to know about this program.
- You can use the program to refinance your existing loan and add the cost of the improvements to the loan. The total loan (current loan plus cost of improvements) cannot exceed the FHA loan limits. In Charlotte and surrounding counties, the maximum FHA loan is $271,050.
- The FHA 203k loan is for owner-occupants only.
- The loan requires a 3.5% down payment of the combined total (loan plus improvements). A down payment won’t be required if you have enough equity in your home.
- Your property must appraise for the total cost of the loan. There may be some leeway in the appraisal.
- The interest rate for an FHA 203k loan may be about a half point higher than the market rate for a standard FHA loan.
- The process from loan application to closing may take 60 days or more. This is because a Scope of Work will have to be created to determine the cost of the improvements.
- You won’t be able to use the FHA 203k loan to renovate your home and then immediately put it on the market for sale because of FHA restrictions on appraisals and flipping. You may have to wait six months to a year before you can sell.
Want to know more?
Contact Carol Fox of Allen Tate Realtors at 704-905-3935.Carol recently completed training to become a Certified 203k Specialist and can provide you with more details about the program.
Copyright 2011. Carol Fox. Allen Tate Realtors. *Use The FHA 203K Program to Fix Up Your Charlotte NC Home*
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The 203k program is a great solution for new home owners looking to buy a fixer-upper. I would definitely recommend to any home buyer to look into this program to help finance the purchasing and renovating of a home.