FHA 203(k) Rehabilitation mortgages allow first-time homebuyers to take advantage of below-market interest rate loans that cover costs of purchasing and making full or limited renovations to your dream home. This program may also be used to finance abandoned or foreclosed properties.
If you are a “do-it-yourself-er”, CHFA understands that your dream home may not be move-in ready. FHA 203(k) Rehabilitation mortgages allow first-time homebuyers to take advantage of below-market interest rate loans that cover costs of purchasing and making full or limited renovations to your dream home. This program may also be used to finance abandoned or foreclosed properties. There are two types of loans, Standard or Limited, depending on the estimated cost of renovations.
Below-market interest rate
Purchase your home with the cost of renovation included
Single-family homes or FHA-approved Condominiums.
Multi-unit properties to be converted into two- to four-family homes.
The purchased property may not be designed for commercial purposes.
You must be a first-time homebuyer or have not owned a home in the past three years.
The home must become your primary residence no later than one year from closing. Investment or vacation properties are not allowed.
The total purchase cost and rehabilitation costs must not exceed FHA Maximum Loan Limits.
You will be required to have a construction contract with a state-licensed general contractor.
The sales price of the home must be within the CHFA Sales Price Limits, and your gross income must be within the CHFA Income Limits.
Some Renovations Covered Include:
Purchase new appliances (up to $2,000)
Satisfy health and safety standards
Well and septic systems
Any repairs that are structural in nature or in excess of $35,000 will be considered under the Standard 203(k) Rehabilitation program.
Targeted Area Exception
If you have previously owned a home in the past three years, you may still be eligible if you plan to purchase in an area of the state targeted for revitalization. CHFA will reduce your interest rate by 0.25% and waive the income limit for eligible applicants purchasing in Targeted Areas who are not applying for a Downpayment Assistance Program loan.
PLEASE NOTE: LOAN PRODUCTS AND THEIR GUIDELINES CAN CHANGE AT ANY TIME.
DISCLAIMER: This is not an offer to make a loan or to make a loan on any particular terms. All loan applicants must qualify under underwriting requirements and satisfy all contingencies of loan approval. Rates and terms subject to change without notice. Norcom Mortgage NMLS ID # 71655 (www.nmlsconsumeraccess.org)
By audra|2020-02-21T18:21:34+00:00September 3rd, 2019|CHFA|