Many borrowers in Latta, SC who plan on buying a fixer-upper discover that it can be challenging to find financing, as lenders typically do not want to make a mortgage on a property that is uninhabitable.
One popular way to buy a fixer-upper is an FHA 203(k) loan, which allows you to borrow money for home improvement and home purchase in the same loan. These loans, often used to revitalize neighborhoods, are offered through the Federal Housing Administration (FHA) to encourage lenders to provide money for purchases that may seem risky.
The FHA 203k has two parts - A portion of the loan amount is for the purchase of the home or the payoff of the existing mortgage to be paid off; PLUS, the cost of renovation including inspections, permits, etc. The maximum loan amount is the lesser of the current or as-is value of the home, or 110% of the home’s estimated value after renovation work. he timeframe for the renovation work is a maximum of 6 months.
There are two types of 203K Loan; 1) FHA 203(k) Streamline limits the financeable repair related costs to $35,000; 2) FHA 203(k) Regular allows the renovation cost to be financed based on the Subject to renovation Appraised Value.
The FHA 203(k) loan is available as a fixed rate, with a 15-year or 30-year term. While rates will be a bit higher than a regular FHA loan, the renovation loan option is often the best way to buy a fixer-upper.
To qualify for an FHA 203(k) loan, you must plan to live in the home in Latta, SC as your primary residence. The home can have necessary structural repairs for a regular loan, or just non-structural repairs for the Streamlined 203(k) loan. The following properties can qualify:
The FHA has rules about which types of repairs can be covered by a 203(k) loan, and the lender in Latta, SC may also allow or disallow certain repairs. Allowable repairs under an FHA 203(k) mortgage include:
You can include the cost of labor in your loan, even if you plan to do the work yourself. Be aware that repair work must be finished within six months of getting the loan!
The greatest benefit of a 203(k) mortgage is you can buy a home in Latta, SC that needs repairs that you could otherwise not afford. FHA 203(k) home loans usually have low down payment requirements, as well as competitive interest rates.
Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:
An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020