Information On A FHA Rehab Mortgage
This is a great loan especially in this current market here in Fort Lauderale and South Florida where the property you are looking to buy needs some work done to it in order to get financing. It is an FHA mortgage which requires 3.5% that allows for repairs and improvements to be made to the property. It is best to try to keep the total costs at $35,000 or less because you qualify for the 203K Streamline Rehab which is an easier process. If you go over that amount it’s not a big deal.
Here is a description from HUD’s (FHA) website on how it is different – “Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made……..
There is a lot to know on this product so make sure to consult a Mortgage Professional like myself that is an expert on it. You can also visit HUD’s website online to read up on it yourself.