Use the FHA 203K Program to Fix Up Your Charlotte NC Home
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*