Restoration, repairs and renovation of your house can be a costly affair. Typically, loans for such work are only available at high rates of interest, with short repayment terms, and other disadvantages. For these reasons the dream of carrying out major work to a newly purchased house, can remain a distant dream or you may decide not make the purchase at all. However, the FHA 203K Rehab Loans Program is an appropriate solution and may well allow your dream of restoring and renovating a house to materialize.
FHA 203k Rehab Loan: Guidelines and Requirements
Let's check the pre-requisites to qualify for 203k Rehab Loans in Massachusetts -
What is a FHA 203k Rehab Loan?
FHA 203K home loan program is intended for those borrowers who wish to cover both the purchase and renovation costs under one program. The primary focus of this program is revitalization and home improvement.
FHA Rehab Loan Qualifications/Who Qualifies for a FHA 203k Loan in MA?
- You must intend to use the house as your own place of residence.
- The cost of the restoration, renovation must be at least $5,000.
- Your credit score must be at least 620 or 640, depending on the lender.
- Your maximum debt-to-income ratio should be 41% to 45%.
FHA 203k Rehab Loan Requirements
FHA 203K is a great option for first-time buyers in MA. The program also offers a reduced down payment and relaxed rules on credit scores, as such it provides a real opportunity for you to realize your dreams of buying and renovating a house. Apart from the above mentioned requirements you will need to complete paperwork, for this it is a good idea to work with a professional mortgage lender.
Benefits of FHA 203K Rehab Loans MA
Unlike a standard mortgage loan, the 203K Rehab Mortgage Loan allows you to spread your payments for the renovation over the life of the loan. What’s more, interest paid on these components are eligible for income tax deductions.
If you’re looking for a mortgage agent in MA, Drew Mortgage Associates might be the perfect fit to guide and assist you through the application process for the 203k Rehab Loans in MA. With expert mortgage agents on hand, they can ensure your application is successful.
For more information, visit- https://www.drewmortgage.com/construction-mortgage-loan/