@Tim, Your comment is a direct reinforcement of agents who clearly have no real knowledge of lending practices; yet continue to offer financing advice. The FHA 203IK program is, most assuredly, available for refinancing borrowers. And the rules, or guidelines, associated the the 203K are really no different than a regualr FHA loan. I suggest you get in touch with a mortgage professional who can help you educate your clients properly; because, clearly, you are walking away from business because of your lack of financing options.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
Most of the answer below are correct, with the exception that you do need to have a little equity. The exact amount is determined by the after improved value and the present value. Typically you will still need to have 2.25% minimum equity in order to qualify. Yes, we can go to 110% of the after improved value, yes you caqn do almost any type of repairs or additions as long as they aren't luxury items, like a pool or hot tub. The rates are still in the low 4's with no points, you need a minimum 600 credit score to qualify and 620 in most cases. Your debt to income ratio can go to 50%. Other than that, the project certainly is feasible for a 203K loan. If you need any further information, we can do these loans in all 50 states and I would be happy to answer any other questions or concerns you may have.
@ Tim, you do not need to have any required repairs to do this loan, you can just simply change the appliances or rugs and flooring.
Renovation Sales Manager, Renovation Specialist, Stagecoach Priority Certified
NMLSR ID 413808
Wells Fargo Home Mortgage | 87 Berdan Ave | Wayne, NJ 07470
Tel 973-686-3244 | Toll-free 877-282-2045 | Cell 973-981-3403 | Fax 973-686-3250 | eFax 206-202-3646
firstname.lastname@example.org | http://www.wfhm.com/jonathan-joachim
As always, find a 203k lender who SPECIALIZES in the FHA 203k program and find a good 203k Consultant to help you. I can get you a referral if you let me know where you are located (property address please) or you can contact me offline at vsimone@203kServices.com
Additional information can be found at: http://www.203kservices.com/faq.php
NMLS ID #2848526
Toll Free: 877-240-5810