All About Fha 203K Loans. The Federal Housing Administration,

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All about FHA 203K LOANS

The Federal Housing Administration, otherwise known as the FHA, is a government agency created to help alleviate the case of homelessness in the country. The agency is under the authority of the Department of Housing and Urban Development (HUD), set up in 1934 after the Great Depression. The primary purpose of establishing the FHA is to oversee different insurance programs for single family mortgages, insuring mortgage loans provided by HUD-approved lending institutions. In order to get FHA loans, buyers are required to have a satisfactory credit rating and make a down payment.

What is special about FHA 203K Loans?

The FHA 203k mortgage loan is one of the many special loan programs provided to make home
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One-to-four family homes like townhomes, detached and single-family houses are eligible. One-to-four condominium units are eligible for interior improvements and repairs only.
- An existing home or dwelling or a modular unit on a particular site can be moved to another site. It is however required that a new foundation is provided and meticulously inspected, in addition to securing the dwelling properly to the foundation.

Borrower Eligibility for the FHA 203K Loan

The requirements for taking the 203k loan are not any different from other loan programs offered by the Federal Housing Authority. The requirements are practically the same and all you need is to meet the standard FHA credit qualifications which include the down payment requirements and mortgage insurance payment – upfront and annual, which depend on the value of the loan. Some of the standard FHA underwriting guidelines that apply include income, credit scores, employment verification and debt.

The major difference that can be spotted in the standard FHA underwriting process compared to the FHA 203K underwriting process is that with the former, there is the usual inspection that checks livability and an appraisal to assess the market value of the property. With the FHA 203K underwriting process however, it does not make too much sense to find the fair market value of a property that needs repairs.
With the 203k loan, there is an

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