Home Buying in Glendale>Question Details

chali_2na_j5, Home Buyer in Burbank, CA

What are limitations on 203k loan amounts?

Asked by chali_2na_j5, Burbank, CA Sat Dec 1, 2012

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7
Sheryl Arndt’s answer
You can borrow up to $110% of the value of the property when the work is completed (as completed value.) You can go all the way up to what loan amount you qualify for up to FHA Loan limits which is $729,750. Here is another link that may help.

http://www.under640ficoscoreloans.com/Pages/203KGuidelines.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Sat Dec 1, 2012
Here are some links to study and consider that I offer for 203k loans.

http://www.under640ficoscoreloans.com/Pages/203K.aspx

http://www.under640ficoscoreloans.com/Pages/203KGuidelines.aspx

Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
ALL Loan Programs Available
20+ Years Experience
BRE# 01140252
NMLS# 297251
760-486-4225
9am till 7pm Monday thru Saturday, Sundays by appt.
http://youtu.be/MrygA2_8fAY

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0 votes Thank Flag Link Mon Sep 16, 2013
From my experience with 203k loans, the best advice is to use a lender that offers assistance via third party with 203k processing.
This shortens the closing time by weeks. Try http://www.cfs-mortgage.com/203k for more information.
0 votes Thank Flag Link Sat May 25, 2013
I think the most important thing is a GOOD and HONEST representative. May I recommend Michael Stein. His number is 212-805-1055. I am the most skeptical person you ever met - Ive researched and asked questions and researched and asked more - he’s always open to answering and amazingly knowledgeable. He helped me understand the loan - the dos and donts and how to proceed. Feel free to contact me off line for specifics but call him - you will not be disappointed - i promise.
0 votes Thank Flag Link Wed Jan 16, 2013
Thanks guys, I suppose I Gould have asked more specifically, but you guys actually answered what I needed to know. I didn't know if there was an amount over the cost of the house limit, so for instance, if the house purchase negotiated came to 400,000, what is the limit of the amount OVER that 400k that I can get toward renovations? I has heard a few different things pertaining to that amount, but I think I have the answer in need, thanks a ton.
0 votes Thank Flag Link Sat Dec 1, 2012
What do you mean limitations? You can buy a home that needs repairs from 5k to 35k with Streamline 203k which can close in 45 days. If you have repairs needed above 35k and up to FHA loan limits per county such as L.A. county is $729,750 max, which is a regular 203k. You can be approved with a few dozen questions? Here is a link.

http://www.under640ficoscoreloans.com/Pages/203K.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225

P.S. Fred the 203k IS designed for damaged and outdated homes to buy and repair or remodel or update, etc...
0 votes Thank Flag Link Sat Dec 1, 2012
A traditional 203K loan specifically allows for the simultaneous purchase and repairs of a home. A home purchased with a conventional mortgage must be able to pass an appraisal, an evaluation of the home's worth, with a value that meets or exceeds the mortgage amount, and a damaged or outdated house commonly does not pass appraisal.

The Streamlined 203k Limited Repair loan lets a buyer finance up to $35,000 in extra money to improve a home as of 2011, in addition to a conventional mortgage. The streamlined loan is for homes that need improvement, but not as much as a home under the traditional program would need. Both types have the same basic U.S. Department of Housing and Urban Development rules and eligibility criteria.


House Limits

The qualifications for a buyer who wants a 203k loan are based on the participating lender's criteria, but the home being purchased is subject to universal standards set by HUD. The house must have no more than four units and be at least one year old. A demolished home or home that has to be demolished as part of the renovations qualifies as long as part of the foundation remains in place. A condominium unit can be rehabilitated using a 203K loan as long the borrower intends to use the unit as a primary residence.

A home that is considered both residential and commercial -- referred to as "mixed use" -- is eligible for the 203k loan program if the commercial use does not exceed HUD's percentages, as determined by the HUD appraiser. A one-floor structure cannot have more than 25 percent of the floor area used for commercial purposes as of 2011.


Finance Limits


Both 203k loan types cannot exceed the lesser of two figures: 110 percent of the home's estimated market value after repairs or the property's current value and the cost of the work. Loans for condominium units cannot exceed the market value of the unit after repairs as of 2011.

A home under the traditional 203k program must need at least $5,000 in repairs as of 2011. The streamlined program does not apply a minimum limit.

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
0 votes Thank Flag Link Sat Dec 1, 2012
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