FHA 203k loans are designated for houses that are damaged or sorely in need of rehabilitation. The loan covers not only the cost of the property, but also the cost of necessary home repairs. The qualifications for the 203k loan program are the same as the FHA guidelines. Homeowners whose homes need improvement can also refinance with these loans. A vast range of repairs including room additions, bathroom remodeling, roofing, flooring, and air conditioning systems can be funded with these loans. Perfect for first-time buyers, low-to moderate-income, buyers with limited cash, and for those who have minor credit problems. The first step in obtaining your rehabilitation loan is getting in contact with a loan officer who will walk you through the process and guide you the entire time.
Organize Your Documents
- Two forms of identification- driver’s license, passport, or social security card suffice (permanent residence card if you are not a US citizen.)
- Pay stubs covering most recent 4-week period
- W-2 forms for the last 2 years
- Last 2 years of tax returns (include all schedules)
- Last 2 years corporate returns and year to date profit and loss statement (if incorporated) if self employed
- Copies of bank statements for the most recent 2 months (include all pages). If received quarterly then the most recent quarterly statements. If passbook then a copy of the entire book including cover. All large deposits must be sourced if not from payroll.
- Contract of sale, signed by both parties
- Architect design, plans and specs
- Contractor’s estimate with a complete breakdown of work and costs
- Contractor’s license and insurance information
- The contact information for your realtor and attorney