| Almost everyone knows about FHA
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| | be reviewed by an underwriter specially
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| mortgages. They are tailor-made for first
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| | trained and certified in rehab loans.
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| time homebuyers and others with less than
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| | Your credit and finances do not have to
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| perfect credit or other financial issues.
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| | be perfect to be approved, but the
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| You don't have to be low income or have
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| | creditworthiness and qualifications are
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| bad credit to use FHA, but generally the
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| | similar to a regular FHA loan.One of the
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| loan limits prohibit high priced
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| | benefits of a 203K is that all costs can
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| homes.What you may not know about FHA is
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| | be added into the project. The fees,
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| that there is a special loan program
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| | permits, closing costs, etc. are all
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| designed to provide the funds to buy or
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| | added up and your downpayment on the
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| refinance your home PLUS additional funds
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| | purchase is calculated on the total. If
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| to make repairs or improvements.This FHA
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| | you are refinancing instead of
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| mortgage is called the 203K and the K is
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| | purchasing, the amounts are totaled the
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| the operative part of the name. Not
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| | same way, but you might already have
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| every lender participates in the rehab
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| | enough equity in the home to avoid coming
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| loan program, but the major national
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| | up with any cash.What's next? Once
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| lenders do. If the loan officer you
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| | approved, the loan closes and the rehab
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| contact is unaware, then call the
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| | portion of the money is escrowed by the
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| corporate office and ask them to direct
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| | lender. The contractor submits requests
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| you.The FHA 203K loan program calls for
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| | for payment and each phase is inspected.
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| an FHA inspector to go over the house,
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| | As soon as the work passes the inspection
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| using the plans you gave him. Before you
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| | for completion, the contractor is paid.
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| get to this inspection phase, you should
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| | You can not go back to the well for more
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| be working with a general contractor who
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| | money, so your initial plan must be a
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| understands how to provide plans and
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| | good one. A contingency fund is usually
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| specs for a project. Plans and
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| | added in during the total project
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| specifications are standard in the
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| | calculation.This contingency fund can
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| contracting industry for anyone managing
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| | only be used to fund hidden repairs that
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| a project >$5000, which is the minimum
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| | were not evident during the initial
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| rehab amount for this loan program.The
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| | workup. Any remaining funds in the
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| FHA inspector will decide if the project
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| | contingency are used to pay down the
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| is feasible, depending on whether there
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| | mortgage at the end of the project.The
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| is additional work required to bring the
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| | FHA 203K mortgage is not a "piece of
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| property up to code, and whether or not
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| | cake", but if you do not qualify for low
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| the property will appraise for enough to
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| | cost money at the local home improvement
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| make the project "worth it". FHA is
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| | equity loan bank, then it is very
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| willing to lend based on the after-rehab
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| | definately worth looking into.Judi Moore
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| value and will even stretch that value a
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| | authors Ask The Underwriter at
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| little in order to get houses brought up
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| | 2rHouse.org and personally answers
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| to code.Once the lender is happy with the
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| | questions from readers about FHA
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| valuations, the plans and specs, and the
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| | mortgages and mortgage advice in general.
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| inspector's report, your loan file will
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