With the FHA 203K loan plan rolled out, it is up for grabs for those who need to purchase new home or renovate their old one. The plan covers them both under one umbrella. A person can convert the renovation costs into the purchase or refinance the home.
Low Down Payments – The plan offers a very low down payment requirement of 3.5%. It could be a gift from your family or you can avail the loan and grant down payment assistance program. For your refinancing you can be sanctioned amount up to 97.75% of the value upon completion of the renovation.
Though a credit card score of 640 or higher is essential, you are not disqualified even if you are a first-time buyer. In case of extensive renovations, and if the underwriter determines that you cannot stay during construction of your house for up to six months of mortgage payments, it can be considered in the 203(k) Loan and you don’t have to pay when the house is uninhabited.
The HomePath loan is designed to facilitate qualified buyers to directly buy the foreclosed homes. It is a wonderful opportunity to own your dream home and it also assists you to renovate it, if required.
You get unbeatable price on bank-owned home, and your down payment is as less as 5%. Furthermore you don’t have to pay mortgage insurance, and to top it all you can get up to $35,000 for renovation.
It applies to those who wish to buy Fannie Mae HomePath eligibility properties. For down payment between 5%-20%, you credit card score should be 660+. It is for those who intend to buy the property for their personal use. Currently the financial requests on properties valued at $60,000 or more are entertained.
The loan plans cutout to accommodate wide range of people, checkout your standings and opt for it if you need one.