VA is 100% financing. You have to be a veteran and they require the home to be in move-in condition.
FHA 203K is a rehab loan where you have to put down at least 3.5% and then can set up an escrow account for the repairs to be performed. The trick is if the house is selling for 100K and it needs 20K in repairs, the house has to appraise for 120K. Repairs have to be done within 6 months after closing.
A VA home loan can be used to purchase a home or refinance an existing mortgage.
We will discuss what role the VA plays in a VA guaranteed mortgage, the benefits of a VA home loan, who is eligible for a VA loan, and the VA documentation you will need to present to your lender.
Did you know that more than 27 million veterans and service personnel are eligible for VA financing, yet most aren’t aware it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement?
Check today’s VA loan rates: http://vastreamlinemortgage.net/loan-process/
The loan amount will include funds for the acquisition of the lot if not presently owned and funds needed to construct the home as well as provide financing for “soft costs” such as permits and fees.
Once the construction loan is approved and closed, the VA lender will disburse funds to the contractor in phases as work progresses. When evaluating the construction loan request, the builder is required to submit a proposed schedule of work, dividing the work into separate parcels. As each phase is complete, the builder makes a request from the bank for additional funds to finance the next phase of construction.
Is your dream home in need of some structural repairs or improvements?
Do you need additional financing to help you purchase and repair an older home?
Does the cost of buying and repairing your fixer-upper stretching you outside of your budget?
A 203k may be just what you’ve been looking for. There are two different kinds of FHA 203k laons. The first is the regular 203k loan which is designed for homes that require structural repairs such as a new new roof or the addition of a room addition.
The second is known as the Streamlined 203k loan and it designed for non-structural repairs such as painting and new appliances. Other qualifying repairs include repairs to: patios, bathrooms and kitchens, plumbing, siding, flooring, plumbing and HVAC.
How can a 203k Loan benefit me?
203k loans are backed by the federal government
Finance the purchase of a home and the repair cost all at once
Ability to live elsewhere while you’re renovating your new home
Minimal down payment requirements and low interest rates
Is this loan right for me?
A popular choice for buyers purchasing an older home in need of repairs
Ideal when buying a fixer-upper
Talk to a Personal Loan Consultant to find out if the type of property you are considering qualifies for a 203k loan.
Reference loan:- http://fha203kloan.org/
To my knowledge, VA does not allow repair/improvement costs in their loans.
Their appraisers are rather stringent about property condition.
Here is the VA Loan Guaranty Home Page:
Here is the VA REO Page: (Foreclosures acquired by VA)
Here is the page from HUD for FHA 203K Loans:
This Page contains additional information:
An approved Lenders List for FHA 203K Loans (subject to change) -
be sure to check the 203K Box at the Bottom of the Page:
Best wishes to you,
2 thumbs up for Fred's answer! VA is very strict on the appraisal and condition of the home. FHA offers a 203 loan and you will need to put down 3.5% of the cost of the home as down payment. VA charges a 1% funding fee and the seller can contribute up to 6% of the closing costs. Most lenders will tell you if you have VA benefits, that is the way to go as far as your mortgage is concerned. There are some thing you want to ask your lender for, a Good Faith Estimate is imperative, you should "double app" which means apply for a mortgage with more than one lender - this will not affect your credit score. VA has less stringent loan qualification than FHA.
The challenge this year is that appraisers are required to be conservative in their work. This is huge when it comes to determining a price to make as an offer.
I specialize in working with VA buyers and I know what to look for when considering a home for purchase.
If I can of assistance, please contact me at
Good luck to you Beth!
Look at this blog it will help you to learn more about mortgages and VA deals.
I've got most of my answers there as well.