FHA 203k Rehab Loan Requirements: Everything You Need To Know Up-Front
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- Äas pĆidĂĄn 19. 07. 2024
- Intimidated by an FHA 203k? No need! We're going to cover the ins and outs of this rehab loan that will help you take a fixer-upper to a shining gem.
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TIMESTAMPS
00:00 Intro
0:20 Overview
0:43 2 versions of the FHA 203k
1:46 Credit score requirements
2:50 The big benefits of FHA 203ks
3:45 What can you fix?
4:57 FHA's list of repairs you can do
6:21 How much can you borrow?
7:56 Can you do the work yourself?
8:38 Sweat equity
9:03 Bids and the contractor
9:24 My honest opinion of 203ks
9:50 How long it takes to close
10:49 How long does it take for work to be completed?
11:15 FHA 203k rates and refinancing
12:28 Alternatives
13:15 203k example and who this loan is for
14:40 8 steps to close on a 203k
16:44 How to qualify for an FHA loan
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1) âą FHA Loan Requirements ...
Hey, my name is Kyle and I'm a Loan Advisor serving Tennessee, Florida, and Ohio. I help you get a crystal-clear home loan so you can win the house you love.
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Here's everything you need to know about FHA loans so you can make sure you don't run into any issues when you're ready to qualify â czcams.com/video/S-v9ZxJevfo/video.html
Kinda confused still, do I need to take care of the health hazards like mold and paint BEFORE applying for a 203k or are those repairs the purpose of the 203k?
Your truly the best wish you work out of New Jersey zđČ
Hi my husband and I recently bought a house and received a 203k loan. The lender disbursed half of the loan to get us started with the rehab work, however they will not disburse the remainder under the work is complete. This confuses me, because we need the money in order to complete the work. Can you advise us please?
@@monique06608 you guys got a 203k loan without a contractor?
@@bbsvchic Hi, we have a contractor however we managed the money ourselves.
This is the only option that worked for me in this current market. Iâm a single parent, and didnât have money to compete with other buyers, who were overbidding on old rundown homes. Plus they only wanted cash or conventional buyers. Iâm currently waiting for my closing date on my foreclosed split level home. Not bad for my 1st home. đ
Wow! Thanks for sharing your story. :)
How many years of work history does it required ?
Update. Thinking about doing this as well
Hi Nitta! I would love to hear about your experience with this type of loan! I have experienced a lot of what you went through before you decided to renovate your home.
Not bad at all đ
Dude youâre the best!! For sure the #1 resource for mortgage info on CZcams! I really appreciate your engagement with us- I will definitely be using this video as a reference to help me move forward efficiently and competently
Thanks so much!! Iâm glad to help :)
Sober videos like this is what makes the internet worthwhile.
Thank you for not posting reaction video for idiots.
Hahaha man I hate those reaction videos and thumbnails with dumb, surprised faces
Im studying for my NMLS. took the class online. Your videos are GREAT to clear up some info and reinforce it all.. THANK YOU KYLE!
Thanks so much!!
Omg, I love how you put the content together! You are amazing at explaining things. Just gave you the 200th 'like' and going to subscribe :)
Thank you so much!!
Much respect. This is a solid youtube video no fluff just presentation
Glad you enjoyed it!
Thank you so much for proving all this value for free for us! This is great. Thanks againâĄ
Thank you so much for watching!! :)
This was fantastic! Thank you for a well-rounded detailed explanation!
Glad it was helpful!
Just by the way you explained and broken down this so well you have a new subscriber. Thanks!
Welcome aboard! I hope you can get to watch more videos about FHA. Thanks for the sub. :)
Can I just say I love ur videos, the way u explains things is just awesome.
Thank you so much đ
This content is now the reason we feel more confident in this being the right choice for us! Ty Kyle :)
I love to hear that. Thank you for watching!!
Once again, an incredibly great amount of good information. Thanks again! đ
Glad you enjoyed it!
My guy deserves more subscribers! I'm in the process of purchasing my first home and appreciate you sharing your knowledge.
Awesome! Thank you!
Thanks for the info, your videos are very clear!
You're very welcome! Thanks for watching!
Thank you soooo much for this easy to understand video!
You are so welcome!
Appreciate the information! Thanks!
Youâre welcome :)
Thank you so much for the video. Could you go more in detail about the flowchart at the end. Like appraiser, finding out arv, permits/OPRA, title search, building Inspector, etc. ?
You're welcome! I'll add a follow up video to my video list :)
Excellent informative video. Iâm currently thinking about a major project in my home. This was very helpful.
Glad it was helpful!
Hi there I would like to say few things thx for this great job and great information itâs helpful I love the way u put the content together I will recommend ur videos to my friends once again thank you đ and be safe
Thanks so much for watching and commenting! I'm glad it's been helpful!
Kyle Seagraves â winthehouseyoulove.com
Win The House You Love đđđđđđđđđđđđ
Great video. This is jammed packed with information!
Glad you enjoyed it!
Your awesome bro. Just gave a TUP! AND SUBSCRIBED,! You come across as very down to earth. That is very important to me, keeep it uppp,
Thank you so much!!
So glad. A house came up in my current neighborhood where Iâm renting but canât afford to buy. Iâm considering doing this. Have to see how much and what work needs to be done.
Awesome!
Wow so glad I found you one this subject â€â€
I love your videos so much! I work with VA and first time buyers a lot, and you're so relaxed and NOT YELL-Y like many of the "5 MISTAKES BUYERS MAKE DEAR GOD DON'T DO THIS YOU WILL REGRET ALL OF YOUR LIFE CHOICES UP TO THIS POINT {INSERT WEIRD GRAPHIC AND LOUD NOISE}." My style is calm, and patient - and I warn my clients before they listen, don't be driving because your voice is very chill. đ€Ł Thanks for the awesome and informative videos that don't scare the mess out of my clients! đ
Thanks so much!!
Hahah no one likes loud obnoxious people, I don't get why there are so many like that on CZcams!!
Thanks for sharing the videos! - Kyle Seagraves winthehouseyoulove.com
great video!!! highly appreciated!!! very detailed!!!
Glad you enjoyed it!
I donât usually comment in videos, but you definitely deserve the thumbs up đ
0:20 Overview
0:43 2 versions of the FHA 203k
1:46 Credit score requirements
2:50 The big benefits of FHA 203ks
3:45 What can you fix?
4:57 FHA's list of repairs you can do
6:21 How much can you borrow?
7:56 Can you do the work yourself?
8:38 Sweat equity
9:03 Bids and the contractor
9:24 My honest opinion of 203ks
9:50 How long it takes to close
10:49 How long does it take for work to be completed?
11:15 FHA 203k rates and refinancing
12:28 Alternatives
13:15 203k example and who this loan is for
14:40 8 steps to close on a 203k
16:44 How to qualify for an FHA loan
đ§ Listen To The Podcast
plinkhq.com/i/1493715474
đ° 7 Proven Ways To Save Thousands On Your Home
www.winthehouseyoulove.com/free
I believe you have to live there a year
I'm wondering can you keep repeating the process or will FHA SAY NO YOU CANT KERP FLIPPING THEM DO YOU KNOW
Late response to this video, but I can't seem to find an answer to my question. For the contractor to start working on the rehab of the home, are funds already disbursed and provided for the Contractor to rehab, or do we have to provide those funds up front to the Contractor and then get reimbursed by the FHA loan?
@@Gotfish there are some occasions when the 203k Consultant will allow a contractor to get an early Demo draw but for the most part, the contractor has to float his money until demo has been completed, checked, and approved. Then the Consultant will release the first draw. From there he/she will work on the next items in order to be checked for the next draw. This repeats until the project in finished. Once checked thr last time, the contractor will get their final draw.
@@donnyp3346 in theory yes. However you'd have to package your story to make it make sense for the underwriter. 1 method I learned from "MG the Mortgage Guy" is his 4-3-2-1 Method.
You buy a quad(4-plex) live in it for 1 year, then refinance to a conventional loan.
Then buy a tri-plex, live it for 1 year, then refinance to a conventional.
Then buy a duplex, live in it for 1 year, then go buy your dream single family home.
Once you get to that point, you'll have 9 doors paying for your dream home! It still has to make sense but typically when you move down in unit count, you move up in square footage per unit. This is viewed as an upgrade and easier to get approved.
Thank you! Would love to see one for Fannie Mae Homestyle Loan đđœ
Thank you for your research for this video. It was very informative and very detailed. This video was exactly what I was looking for. Keep em coming sir
Glad it was helpful!
thanks for sharing, your explanation is clear and easy for follow!
Glad you enjoyed it! Thanks for watching!
This is awesome! I currently flip homes. - I have one that we want to keep and live in. We need to close in less than 30 days. - The best option I see is an acquisition + rehab loan (HML). Then refinancing it into my personal name. - Any other ideas on a shorter timeline?
Your the only CZcamsr I have to pull out a pin and paper with ....and you know what Iâm not even mad đđ great videos full of useful factual info .
Hahah welcome back to school. Thanks for watching!
Kyle Seagraves â winthehouseyoulove.com
Thought I was the only one
Thank you! Would love to see a video on Fannie Mae HomeStyle Renovation loan as well :)
Noted!
Wow, I may just work towards an FHA 203K Loan. And convert to a conventional. Iâm not in construction but Iâve contracted construction projects for work so I know exactly the process to get work done. Wow. Iâm so excited. Thanks. Please post more about this topic đ
Awesome, best of luck!
This video is evergreen. I'm saw FHA 230K on a listing, searched CZcams and wham, a WTHYL video! Excellent!
Thanks for watching!
So much information and my pen has not stopped working since the beginning đ! Thank you
Happy to help!
love your videos Kyle, you are awesome!
Glad you like them!
Can you do video on current homeowners !!!!!I want to pull equity out my first home, so whatâs the best product to use, when I want to keep my first home, & rent it out and then move into a 4plex using the 203k loan
Good video, thank you for clarify about that program
Glad it was helpful!
Your information is always on point.
Thanks for watching :)
Great video and insight!
Thank you sir!
Great video! I am a new LO and I am working with a contractor that specializes in ADUs. Homeowner is already living in home, so would 203k loans work in this situation? What loan(s) besides cash out refi would you recommend? ADU's cost anywhere from $180k-$380k here in CA.
Thanks for the vid. Iâm battling as a first time homebuyer if I should do this loan.
Best of luck!
Man I love the information, and I love how this is filmed. What software did you use to do the split screen?
Thanks! Just Final Cut
Watching this video because I found a house that needs complete re-siding, half the windows replaced, and the deck completely replaced or torn down. Thanks for the knowledge.
Not looking to flip, just want to live there. It's a time capsule from the 80s
Wow! Thanks and best of luck. :)
great video thanks!
Thank you so much for watching!! :)
I love the video. You did a great job in explaining the FHA 203K loan and the process....Hi what if your family owns the property (house and Land) but you want to renovate the home. Do you have to put the property in your name. My family have a home that sits on 1.4 acres. I want to add a double car garage with living space and remove existing roof on existing home and create living space above. I looking at between 200-250k in repairs to update the home.
Thanks for the video. That was really helpful. What other ârehabâ loans or construction loans do you recommend for doing renovations? Or loans that can work in tandem with a conventional loan?
HELOCs are a popular way to finance home improvements, it is a secured loan & backed by your home. You can also qualify for lower interest rates than you would for an unsecured personal loan.
Nice video Kyle
Glad you enjoyed it!
Great video!
Glad you enjoyed it
Very informational thanksđ
Youâre very welcome!
WOW......YOU ARE AWESOME!!!! THANK YOU
Glad it helped!
You are very helpful. Thank you
Hi, thank you so much for the kind words, I really appreciate it!
Great content man! Do you mind increasing the volume during editing just a bit. Iâm on full blast on my iPhone and itâs a little hard to hear you.
Thanks! Will do!
I wish i was told by the lender about the requirement that a professional general contractor has to do 90% of the work. I was planning on doing about 80% myself but now am between a rock and a hard place. Glad i saw this video before closing
Thank you so much for watching!! :)
Excellent video.
Thanks!
By far one of the best breakdowns of a loan program i've seen. You've got a fan and a subscriber in me.
Thank you so much!!
You applying for a loan
Thank you very much
My pleasure and thanks for watching. :)
Great video, Kyle! Is it possible to buy a multi-unit with an FHA, then a year later get a single family with an FHA/203k? For example, buying a multi-unit as a single person then a year later your family size doubles and you need more space, but there arenât any affordable options that meet your needs SOOOO you looked for affordable properties that you can improve. I saw your other video about 2 FHAs but I wonder how a 203k affects that. Thanks!
Thanks! You certainly can :)
When does the mortgage payment begin; during the repairs or after you move in?
When applying for an FHA standard 203k loan, whatâs the best way to do that? Just going to their website? Itâs a little hard to navigate. And when I do the research myself and the Internet recommends lenders to me, when I call them the person talking to me goes âoh Iâm not sure about thatâ. I feel like Iâm going in circles even at the starting point
Excellent video â€ïž
Thank you very much!
very helpful information thank you 2022
Glad it was helpful! You can also check out my updated FHA Loan Requirements video. Here's the link: czcams.com/video/VXISYMYpfaI/video.html&lc=Ugyx2D9rURVUwGRHd_V4AaABAg
Got it, nevermind you answered my question. Thanks!
Youâre welcome!
so insightful! can you elaborate on how and when you convert the 203k into a conventional loan and how flipping the property can result in profit?
Thanks! You don't have to refinance into a 203k, but you'll need to wait a minimum of 6 months to do so.
I'll add this to my video list :)
I'm looking at a couple properties with old mobile homes on them. If I am to buy one of these my plan would be to scrap out and remove the old home from either lot. and replace with a new home. I don't know, can I rehab the LOT instead of the home? By using an FHA 203k loan or would I need a different type of loan? I think price may keep me in mobile homes but would go modular if I could.
When would be the best time to select a 203K consultant? Before or after applying for a mortgage?
Hey thank you so much. Iâm trying to buy a home and as a first time home buyer and on a budget, this is some real helpful stuff. Question Can I buy a home with a FHA loans, live in it and work in a different state. Thanks so much
You're very welcome! Would you be working remotely? If your work is greater than 75 miles from where you live, the underwriter usually asks for additional documents to make sure you're purchasing as a primary residence and not an investment property.
Great video! I imagine a contractor is going to charge about $500-$1000 for the consulting, the detailed line by line bid and the countless times they have to communicate with the homeowner/appraiser/Lender.
Hi! Thanks for watching! :)
If they are a competent contractor, I'd expect that to be built into the costs whether directly or indirectly.
If they do a good job and the pricing is in the right ballpark, don't nickle and dime them. Especially considering that the work will likely get you some extra equity on top of what you are paying the contractor.
Great video! Do you need to work with an outside contractor or can you do all the work yourself?
Thanks!
You can only do 10% of the work yourself. The other part has to be done by a contractor.
Kyle Seagraves â winthehouseyoulove.com
Thank you â€ïž
Youâre welcome đ
Hey Kyle, for a senior citizen who has some roof issues, would a cash out or HELOC loan be the way to go? Iâm not really sure how the bank would be willing to lend me money since Iâve got some serious water damage. What should I look for loan wise?
Great content
Thank you so much for watching!! :)
Thank you so much for a simply explanation of the 203k loan.
How does one figure out the monthly payments?
Hi! If you want an estimate of your monthly payment, you can watch this video and check out the free calculator. here's the link: czcams.com/video/DUlysTfrVMY/video.html
Kind of accidentally got my heart set on an absolute but hopefully salvageable mess and it's kind of cool that I might have chance with it
Can you do 100% financing, aka no down payment with a much higher credit score? Im looking at buying a fixxer upper but dont want to put a down payment down and would like to do a loan like this for some renos!
Excellent video, very helpful. I'm curious after watching your FHA requirement video, if the standard FHA loan allows for a multi family 1-4 units, and the FHA 203k requires work to be started in 30 and completed in 6 months, how would this work in a multi with current tenants? Is there an extension/waiver for occupied units? Or does 203k lenders just not consider occupied multis for loan approval?
I believe they do you just have to live in one of the units.
Hmm, I'm not completely sure. You'd likely need to talk to an attorney about navigating the occupancy issues
Fantastic information!! The way you presented everything was so clear and all encompassing. Can you use 203k to buy a multifamily home if you live in it?
Yes! Multi-family housing that needs rehab can be financed with the FHA 203k. The owner/mortgage holder must also live there. It must also be the owner's primary residence. Thanks for watching :)
Yeah I guess
You make it seem so streamline. Thanks
Wow! Thanks for watching!
Had to subscribe and like it twice.
Wow, thanks! Welcome aboard. :)
Where can I find the info where 6 months of payment can be deferred? Till after the rehab is done.
Not for nothing, but your voice is what I'd imagine that my hypothetical therapist would have for a voice. If that makes any sense lol. Soft spoken dude .. it has almost a calming effect đ
Hahah thanks
Great video again!! If the contractor takes 6 months to finish the project will I be making monthly payments for those 6 months?
Thanks! Since the 203k closes before work is done, you'll have to start paying back the loan after it closes even if the work takes a few months.
This is gold fam
You're free to harvest! Thanks for watching!
What if you qualified for less than the LTV before you switched to 203k? Is my max loan that plus repairs? Or can I borrow more because the property is with more?
The house we have under contract has the utilities turned off...at what point can we get them turned on? Can I live in the house during contraction?
I think this is great content!
Thanks for watching, Frank!
@@WinTheHouseYouLove Im in my 2nd year as Realtor and I needed to watch to have a better understanding! Great content sir! You explained very well.
Thatâs awesome! Best of luck in the real estate world! Itâs crazy out there right now
@@WinTheHouseYouLove yes its crazy right now. We have seen a spike in buyers in my area because of interest rates. Homes are selling.
so i currently have a fha loan property that is a multifamily that i purchased over a year with fha loan. its been 2 years now and i would like to buy another one with fha loan aswell, how do i do that?
Do you start paying your mortgage once u move in or do have to pay mortgage regardless while thier rehabing??
If I refinance into a conventional loan, would i be able to use the FHA loan again on another property?
My man! I believe that I am one of the big reasons this video came out if I do say so myself, haha. Just joking, but great video, Kyle!
You definitely tipped the scales!! Thanks for watching and suggesting!!
What would a ideal monthly payment cost be like on a FHA loan with a 5-10% down payment on a home ranging from 100-150k?
Here's a good plug-and-play calculator: usmortgagecalculator.org/
I'm in California, is there any stipulations with FHA 203K Standard loans that does not allow down payment assistance? My lender claims I don't qualify for DPA because the repairs exceed $31K. I've been researching and haven't found anything to support that. It sounds like she's inexperienced with 203K and trying to process it as Limited as opposed to a Standard. Can anyone offer insight???
Can you do a 203k on land purchases along with the build ? Also single family converted to multi family ?
No, 203k is for rehab of existing homes. You'd just need an FHA construction loan
Hello there, how are you
Many Thanks for all this information.
We are located in south Florida. Do you know anyone who can help us with the process in getting this 203k. We have a general Contrator license. We want to get further information
Thanks for all your help!!!
Could one utilize the 203k on a home they already have a mortgage on and live in ?
so can you live in the home during the repairs? or can you only move in after its all done?
Do you have to be a first time home buyer? Or can I do this many times?
I am making the plunge to become a buy and hold Real Estate Investor. I keep hearing Investors saying I can get up to 10 FHA loans before they will no longer allow me to have another one. However, no one goes through the ins and outs of how this is possible aside for saying "get the loan with the intent to live in it. But, not really!!! They just tell them that so they can get the loan with low down payment so they can refinance after rehab. Do you have a video explaining this or could you make one? Would I be able to do this with the 203k Rehab loan?
Awesome channel by the way very clear cut. Last thing, because of your professionalism do you have connections with loan advisors in Missouri?
Haha, sounds like these investors might be a little misinformed.
Here's a video on having multiple FHA loans: czcams.com/video/WSnAAJ2LKcg/video.html
The stipulations on having multiple FHA loans can be tricky. You can, however, have up to 10 financed properties at a time. This is easiest with conventional loans.
I don't currently know a Missouri lender, but I'll work on trying to get connected with someone I can trust.