Requirements
FHA 203k Loan Requirements Minimum Credit Score | |
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Standard FHA loan amount - 640 | |
Jumbo FHA loan amount - 640 |
203k Loan Requirements Eligible Transaction Types | |
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Purchase | |
Rate/Term Refinance - Maximum loan-to-value is 97.75%. Maximum CLTV is 100% | |
No Cashout Refinance. All funds must be part of the repair escrow to be paid to the contractor |
FHA 203k Loan Requirements Down Payment - Purchase Transaction | |
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3.5% of the loan amount (purchase price + repair escrow account) | |
If HUD Owned Home - as little as $100 down |
203k Loan Requirements Repair Escrow Account | |
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Minimum amount - $5,000 | |
If over $35,000 must use a Full 203k loan |
FHA 203k Loan Requirements Maximum Loan Amount | |
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County specific. Reference the HUD website for FHA Mortgage Limits |
203k Loan Requirements Occupancy Type | |
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Owner occupied only |
FHA 203k Loan Requirements Eligible Properties | |
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Owner-occupied properties at least one year old | |
Attached & detached single family residences | |
2-4 unit properties | |
PUD's (i.e. Townhomes) | |
Condo-units in FHA Approved Project (maximum mortgage cannot exceed 100% of after-improved value) | |
Modular homes | |
HUD Owned Home (may qualify for a down payment as little as $100) |
203k Loan Requirements Ineligible Properties | |
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Properties less than one year old | |
Co-ops | |
Mixed-use | |
Condotels | |
Manufactured homes | |
Log cabin homes |
FHA 203k Loan Requirements Maximum Loan-To-Value (LTV) | |
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Purchase - Maximum loan-to-value is 96.50% | |
Rate/Term Refinance - Maximum loan-to-value is 97.75%. Maximum CLTV is 100% |
203k Loan Requirements Maximum Mortgage Amount | |
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Reference Form HUD-92700 203k Maximum Mortgage Worksheet | |
110% of the after completed or improved value | |
2-4 unit properties - call for details |
FHA203k Loan Requirements Borrower Eligibility | |
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U.S. citizens | |
Permanent resident aliens | |
Non-permanent resident aliens:
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First time home buyers allowed | |
Maximum 4 borrowers allowed | |
Non-occupant co-borrowers allowed:
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203k Loan Requirements Seller Contribution | |
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6% of sales price towards closing costs, pre-paid's, discount points, buy-down fees, and up-front MIP |
FHA 203k Loan Requirements Mortgage Insurance | |
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Upfront MIP - 1.00% of the loan amount | |
Upfront MIP can be paid in cash or financed | |
Annual MIP is paid monthly:
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Example - $100,000 purchase price, 30 year fixed rate mortgage, 3.5% down payment
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Qualifying Ratios | |
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31/43% debt-to-income (DTI) or as determined by Automated Underwriting Engine (DU/LP) |
Receive loan approval from an approved FHA 203k mortgage lender | |
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To determine your eligibility for a mortgage loan call (866) 747-2882 from 8:00 a.m. to 6:00 p.m. Monday – Friday or complete a loan application using our secure encrypted online application. |