Have you found a home you wish to purchase which is in need of some repairs? If so, did you know that you can finance both the purchase and the repairs using an FHA 203k loan?
Desert Springs Mortgage can connect you with an FHA 203k loan in Arizona, California, Colorado, Oregon or Washington.
What is an FHA 203k Loan?
In the past, purchasing a fixer-upper used to be complicated. But with the advent of the FHA 203k loan program, it is now simple, fast, and affordable to buy a home in need of repairs.
When you apply for an FHA 203k loan, you can roll the estimated costs of the repairs and upgrades you need to make into the mortgage. So, instead of applying for multiple lending products, you just have a single loan to pay off over the years to come.
How You Can Use an FHA 203k Loan in Arizona
FHA 203k financing is designed to make it easy to turn an unlivable home into a livable one.
You can use it to finance vital repairs and improvements. For example, if there is no septic system or if the plumbing is not usable, those are examples of repairs and upgrades which you could cover with this type of financing.
An FHA 203k loan also can be used to improve the energy efficiency of a home you are buying.
Further, you can put in practical additions such as a garage, remodel a kitchen, landscape the yard, and so forth.
Are there any types of upgrades which are not allowed with this type of loan? Yes, but only if they are considered “luxury upgrades.” An obvious example would be putting in a swimming pool.
But if a luxury feature is already part of a home you are purchasing and requires repairs to function, you can roll in the repair costs.
Qualifying for an Arizona FHA 203k Loan
There are some basic eligibility requirements you need to meet in order to receive an FHA 203k loan. These include:
- A credit score at or above 620-640.
- A debt-to-income ratio no higher than 45%.
- The ability to put at least 3.5% down on a home.
Along with meeting these requirements, the house you want to buy also will need to meet certain requirements. For example, it cannot be a cooperative unit or an investment property.
If you need help establishing your eligibility or that of the property you want to purchase, we can help you out during your consultation. We also can tell you more about the types of repairs and upgrades which are allowed with FHA 203k financing.
Apply for an FHA 203k Loan Today
If you are ready to buy and repair the fixer-upper of your dreams in Arizona, California, Colorado, Oregon or Washington, you can apply for an FHA 203k loan today by calling (623) 432-1309.
