How to apply for fha loan
Make sure you have enough moneyAs of the beginning of 2010, you only need to come up with a payment of 3. 5% of the purchase price of the house plus the cost of repairs to buy a house with this type of loan. Therefore, if you buy a house with a asking price of $ 150,000 and need repairs of $ 15,000, you will need 3.5% of $ 165,000 or $ 5,775 as a down payment.
Make sure that you are a strong candidate for a loan. Choose the How to apply for fha loan that best suits your situation. Before applying, determine what type of loan you will need. In fact, there are two types of mortgages FHA 203 (k): the first is called “normal”, and it is designed for objects that need structural repairs. The second one is called “streamlined” or “changed.” It is designed for objects that need only non-structural repairs..Select a lender At any time when you apply for a subsidy subsidized by the government, be it VA loan, FHA loan, green mortgage or FHA credit 203 (k), your choice of lenders will be somewhat limited. FHA 203 (k) loans, in particular, are not very common, so many lenders either do not know how to handle them, or do not want to deal with additional documents and hassles. Since the process of applying for a loan for 203 (k) loans is complicated, you definitely want to work with a lender who has experience with this special loan product.
Not all creditors are approved for handling 203 (k) loans. The How to apply for fha loan must grant creditors permission to offer them. To find an approved lender, check with the approved HUD lender here. Be sure to check the box at the bottom of the page to limit the search to lenders who have made 203 (k) loans in the last 12 months.
proof of assets and credit reports, 203 (k) application for a loan requires the creation of an application for rehabilitation. Your proposal should describe the work that must be performed on the property, and provide detailed cost estimates for each repair or improvement. Architectural exhibits, such as the site plan and the proposed internal plan, are necessary for any structural repair. The HUD checklist, available here, will help you understand the issues that should address your proposal. The checklist covers all areas of the house that may need repair, from gutters and access roads to floor coverings and windows.
You do not need to hire professionals to repair, but the How to apply for fha loan says that the work must be completed in accordance with professional standards and in a timely manner. In addition, if you plan on doing repairs yourself, you can not use credit to pay for your work. You can only use credit for the cost of materials, if you yourself will do this work. If this sounds like a boom deal, remember that borrowed money, even at a low interest rate, is not free money – it’s money that you will have to pay with interest. So, as long as you know what you are doing and can afford to spend time on the project, you can go ahead by doing the work yourself. In addition, you can use the money that you save without finding contractors to make additional improvements to the property,