Getting to Know FHA 203k Loans In Michigan
Marc Edelstein connects soon to be home buyers with lending options that meet their specific needs. We offer Government backed loans that are insured by the Federal Housing Administration (FHA). FHA 203k Loans are a unique mortgage option that have a wealth of benefits. This loan can help potential homebuyers purchase a property where they otherwise might not qualify for a conventional mortgage. Marc Edelstein helps his clients in Novi, Northville, Plymouth, Livonia and the whole state of Michigan. Contact Marc Edelstein today to schedule a consultation to learn more information about FHA 203k Loans in Michigan.
An FHA 203k loan enables new homebuyers to finance their home purchase and home improvements in a single mortgage loan. Under the FHA 203k loan program, the home is appraised before rehabilitation takes place and the total loan amount is based on what the projected value of the home will be in the improved condition. By providing affordable financing to acquire the property, as well as additional funds to improve the property, an FHA 203k mortgage helps homebuyers who are purchasing a house in need of repair or modernization to avoid costly high interest rate, interim loans and time-consuming paperwork.
There are two types of an FHA 203k loans. The first is a full FHA 203k, which is used for properties that need structural repairs such as foundation improvements/repairs, moving a load bearing wall or a room addition. The second is the streamlined FHA 203k, which is used for non-structural repairs such as painting, energy efficient improvements, carpeting/flooring and new appliances. A FHA 203k loan allows you to update any home, in any neighborhood, in any condition!
Here’s a Few More FHA 203k Loan Highlights:
- The maximum renovation amount allowed for a streamline is $35k. (For SE MI the maximum amount allowed for a full FHA 203k is $294,515)
- The loan is based on the value the home would be after improvements were made.
- Construction must be completed by a licensed and insured contractor.
- Renovations begin right after closing.
- Contractors have 6 months to complete the work.
- Seller can contribute up to 6% of the “as is” price towards the buyers closing costs and pre-paid expenses.
Who Can Get an FHA 203k Loan in Michigan?
FHA loans were created for people with less than perfect credit history and who are unable to put down a large down payment. Some candidates for an FHA loan in Michigan include people who:
- Have less than perfect credit history
- Are planning on living in their home as a primary residence
- Want flexible term options or a fixed interest rate
- Can benefit from a low down payment (3.5% in many cases)
- Have filed for bankruptcy or foreclosure in the past (with stipulations)
Choosing A Qualified Lender
In 2014 Marc Edelstein was certified by the state of Michigan to teach FHA 203k Continuing Education Classes to the Real Estate Professional Community. So if you are looking to get information about a FHA 203k loan or if you already know a 203k is what you’re looking for, Then Marc Edelstein is who you need to be talking to! Let the Marc Edelstein answer all your questions and guide you through the process. Any house can be your dream home! Call Marc Edelstein NOW!
Choosing to work with Marc Edelstein of Ross Mortgage can help the homebuying process go smoothly. With over 15 years of experience Marc Edelstein knows how to match each client with the right loan that works for them. Marc Edelstein can help you get pre-approved which gives you leisure to focus on the actual home search! To learn more about FHA 203k loans in Novi, Northville, Plymouth, Livonia and the whole state of Michigan contact Marc Edelstein today.