Applying for a FHA 203K Rehab Loan in South Carolina
There are a few types of FHA 203K loans that provide repair costs as well as the funds necessary to purchase a home in Columbia, South Carolina. The Standard 203K is used when repairs are extensive and time-consuming. Major structural work and large-scale projects generally fall under the umbrella of a Full FHA 203K loan.
One of the interesting features of a Standard 203K loan is that the loan may be buoyed with up to 6 months of mortgage payments if the homeowner would need to live elsewhere during the repairs. If a homeowner has no choice but to find alternative accommodation for the repair process, even if the repairs aren't likely to cost over $30,000, the Standard 203K would also be the way to go.
The process of obtaining a Full 203K loan tends to include the following steps:
- Save up money for a down payment
- Find a dream home or "fixer-upper"
- Speak with a loan officer of an FHA approved lender
- Work with a HUD Certified Consultant to create a work schedule
- Complete the loan application and get mortgage insurance
- Get a property appraisal
- Receive loan approval and sign mortgage documents
Tip: Talk with a Columbia, South Carolina loan officer about finding the right HUD Certified Consultant. Loan officers will have strong working relationships with experienced and reliable consultants.
Additionally, remember that FHA loans require a down payment and that saving this money before starting the home search and application process is recommended. Don't make the mistake of finding a wonderful Columbia home only to realize that there isn't enough money for a down payment to begin the mortgage process.
Remember that South Carolina Standard FHA 203K loans have the option of rolling in closing costs to the final loan amount. The needed repairs will also be part of the total loan amount, which cannot exceed 110 percent of the projected value post renovation or will match the current value of the home, plus the expected repair costs.