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How can I qualify for an FHA loan on a fixer uppper?

Posted on: 01st Dec, 2006 10:10 am
This is a puzzle for me. I have the realator telling me that it's easy, but if it's that easy why isn't everyone doing it?

I made an offer to the owner for $40, 000 as is. It basically needs an inside make over. I am hoping I can qualify for an additional 25k to do so with.

I also have a check in collections right now. I am working on clearing that up as soon as tax season comes.
"How can I qualify for an FHA loan on a fixer uppper?"
There are FHA insured 203(k) loans provided through approved mortgage lenders which can be used for fixer-uppers.

As a buyer you will have to execute a sales contract which should mention that you are looking for a 203(k) loan. It should also be mentioned that the contract relies on loan approval based on additional required repairs.
Posted on: 01st Dec, 2006 11:04 am
Hi Angelica,

You can locate the lenders who offer 203(k) Rehabilitation Loans in your area from this page: http://www.hud.gov/ll/code/llslcrit.html

La Ribeyrette
Posted on: 01st Dec, 2006 11:13 am
Hi Angelica,

The FHA loan for upper fixer includes the price of the home as well as any cost of repairs, which you may like to carry out. In order to qualify for this type of loan, you should have your monthly housing costs limited within 29% of your gross monthly income.

You should be able to prove our job stability and reliability. By this I mean that you should be holding a steady job for at least 2 years with the same employer. If you have gone through any foreclosure or bankruptcy, it should be at least 3 years old.

Thanks,

Caron.
Posted on: 01st Dec, 2006 10:49 pm
Keep in mind, the 203(k) loan is only for owner-occupied, meaning this will be your primary residence. It is not for someone looking to buy an investment property.
Posted on: 02nd Dec, 2006 05:27 am
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