FHA 203k Mortgage Rehab Loan – Idaho Lenders
If you are looking to find a great deal in the Boise real estate world, you would most likely look at buying a Boise foreclosure, Boise short sale or a Boise bank owned property. One of the problems with bank owned properties and foreclosures is that many of them need a little TLC such as new carpeting, a new roof or need new windows or paint etc.
In the past, this could cost thousands out of your pocket. However, today there is a loan available called the FHA 203(k) rehab mortgage, which allows a borrower to purchase or refinance a home and make limited upgrades to the property, all under one single loan.
How to qualify for an FHA 203(k) Rehab Loan in Idaho:
It is fairly simple, all of the guidelines involved with the Idaho 203(k) FHA Rehab Program are the same as if you were qualifying for a regular FHA loan. The only difference is that you will need the help of a contractor.
If you are thinking about purchasing a bank owned property, fixing up a foreclosure, or maybe you want to do some upgrades to your existing home without having to come up with a bunch of cash, a 203(K) renovation mortgage might be right for you. Be sure to check out the 2019 Idaho FHA Loan Limits to see the loan limits in your county.
10 Simplified Steps to Closing an Idaho FHA 203k Renovation Home Mortgage.
There seems to be a lot of confusion as to the process involved with an Idaho 203k Home Loan. Below we have outlined the process in order to simplify the steps involved and make it easier to grasp and understand the 203k home mortgage as a whole.
- Get Pre-Approved
- Find Property
- Make offer on property
- Get a General Contractor to bid out the repairs for you.
- Once offer is accepted we will submit the accepted property offer along with contractor bids and general contractor resume/paperwork
- Underwriters review your requested information W-2’s, pay stubs, etc. and contractor information and bids.
- An appraisal is ordered as subject to completion (meaning appraisal is done as though the repairs have already been made)
- After Underwriters sign off on documentation they received and appraisal we go to closing at the title company
- Get keys to house after closing/funding and you move in.
- Once you close on the loan and move into the house the general contractor will start the work and will have to complete the project within a certain amount of time.
The Idaho 203k renovation loan has basically the same credit and qualifying requirements as a standard (203b) FHA mortgage loan the major difference involved is that there are repairs on the property that the borrower wants or needs to be made to the property.
The Idaho 203k renovation mortgage is great for fixing up properties for individuals looking to fix up their primary residences.
If you are looking to fix up your existing residence or looking to fix up a home you are looking to purchase we would love to help you and answer any questions you might have. Feel free to contact us and we will help you in any way that we can.