FHA – Government Insured Home Loans
What is the purpose of this program?
To provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.
What are the eligibility requirements?
- The borrower must meet standard FHA credit qualifications.
- The borrower is eligible for 96.5% financing. The borrower is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.
- Eligible properties are one-to-four unit structures.
- To learn more about the mortgage limits in your area, go?here
For More Information
Call Ken Cook at 678-439-8683 I am a Senior Mortgage Lender with AmericaHomeKey in Marietta, Georgia residential mortgage licensee 23191.
Buying rehab homes with the FHA 203k
“Oh I don’t want to mess with all that trouble”, the agent said to me during a phone conversation. She meant she did not want to mess with selling a home that needed a new roof, some plumbing repair, new carpet and new appliances which I could finance into the loan amount.
I asked, “why not? What trouble?”
It seems she had a few misunderstandings about how this powerful purchase loan works. The truth is it doesn’t involve any extra work for her than a regular FHA loan. What it does it take an unsellable home and turn it into a sale. Conventional loans do not allow for some of these types of repairs on an “as is” home sale. Even there it increases the sale amount by the mere virtue of dealing with a homeowner financing the property instead of an investor paying cash for the property.
The FHA 203k Streamline purchase loan is perfect for the large majority of homes in the US. Any home that qualifies for a standard FHA home loan, the 203b, also qualifies for the FHA 203k if it needs less than $35,000 in non-structural upgrades or repairs. So what CAN you do with an FHA 203k loan?
- Repair or replacement of roofs, gutters and downspouts
- Upgrade of plumbing and electrical systems
- New flooring or floor covering
- Exterior decks, patios and porches
- Minor remodeling (no structural such as room additions)
- Paint and wall covering
- Weatherization including storm windows, storm doors, insulation and weather stripping
- Purchase and installation of new appliances
- Disability access improvements interior and exterior
- Basement finishing and remodeling
- Basement and crawl space moisture control and waterproofing
- Window and door replacement
- Exterior residing such as replacing old, defective siding
- Septic system or well repair or replacement
FHA 203k Loans for Rehab Properties
The question comes up again and again about FHA 203k loans and real estate investors. The short answer is, “no, the FHA 203k loan is not for real estate investors”. For over a decade I have had real estate investors call me saying they had been to a seminar where they were told about FHA 203k loans for real estate investing and I have had to educate many to the reality – not because I’m so great but because I have been an FHA HUD approved lender for many years.
So what about the FHA 203k loan can benefit a real estate investor?
RESPA Reform For Everyone – New GFE and New HUD
Originally posted on Active Rain on 11/12/2009
NOTICE: Although the new HUD1 and GFE have been released we don’t start using them until January 1, 2010 so no need to stop, drop and roll.
FHA Loans and HUD Homes for $100 Down Payment
Earlier in 2009 HUD put a nail in the coffin of one of the only stimulas packages that had ever been successful without spending your tax dollars and that was Down Payment Assistance offered by companies like Nehemiah. The way it was worded was to say that homes purchased using independent, not-for-profit down payment assistance on FHA home loans, in Georgia and around the nation, somehow magically had a higher foreclosure rate than homes purchased using taxpayer funded down payment assistance. It was not true but I digress.
The Extension and Modification of the FTHB Tax Credit
HIGHLIGHTS ONLY - I don’t want to distribute incorrect information so if you have a viable correction please make it known in the comments.
HR 3458 “The Worker, Home Ownership and Business Assistance Act of 2009″
While it is called an “Extension and Modification of the First-Time Homebuyer’s Tax Credit” it really is an extension and overhaul or re-construction. Modified doesn’t seem to cover it. If you are interested the full text of the Resolution signed into law is found at?this link on Thomas Library of Congress. (This is also based on?S 1678 dated September 16, 2009 and passed unanimously in the Senate.)
Georgia Area Median Income by County
Many home loan mortgage programs have different requirements for maximum income levels by borrower and or household. Each state has different areas and often a single MSA or AMI may cover multiple counties. It is always best to consult with your home loan mortgage professional but, only as a guideline, here is the HUD AMI (Area Median Income) list for Georgia as of November 2, 2009. In Georgia call Ken Cook at 678-439-8683











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