FHA/203K LOANS
An FHA 203k loan is a renovation loan for an existing 1 to 4 family home that the borrower intends to occupy as their primary residence.
Advantages of a 203k loan:
- All construction costs including plans and permits are included
- The borrower only needs a 3.5% down payment
- Interest rates are competitive
- The loan is guaranteed through the FHA
- 203k loans are the only commonly available resource for construction loans
Advantages of 203b or regular FHA loans:
- 3.5% down payment
- All funds in the transaction can be gift
- County or Municipal grants for down payment and closing costs accepted
- Marginal credit accepted
- Higher debt to income ratios accepted
SunQuest Funding has extensive experience with FHA loans. We are one of the top providers of 203k loans in New Jersey. Our management team has over 40 years of combined experience handling FHA financing. You can depend on the professional, experienced staff at SunQuest Funding for a positive experience during a stressful transaction.
What is an FHA mortgage?
The FHA (Federal Housing Authority) was created
by the Federal Government under the national housing act of
1934 to improve housing standards and conditions and to provide
affordable housing financing
for qualified borrowers. Today, through their FHA
mortgage loan and FHA 203k loan programs, millions
of people are enjoying home ownership. The FHA insures
100% of an FHA mortgage, thereby eliminating the lender's
risk. In New Jersey, FHA mortgage stipulations are
the same as across the country. The borrower pays an upfront
insurance premium that is approximately 1.5% of the FHA
mortgage or 203k
loan amount. It is possible for this premium to be
financed directly in the loan amount. The borrower also pays
a monthly premium of .5% of the FHA mortgage loan amount
divided by 12 months. FHA mortgages and FHA 203k
loans require down payments of 3%.
In New Jersey, FHA mortgage options
are a very popular route for the first time homebuyer to take,
but it is not a program that is developed or reserved specifically
for first time homebuyers.
Today, the FHA also plays a critical role in financing for
minority borrowers, borrowers who have troubled credit history
and borrowers who have little money to put down on a home.
Also, buyers are not limited to purchasing only their first
home under FHA mortgages or 203k loans. A buyer
can buy a third or fourth home with an FHA
mortgage or an FHA
203k plan. The only stipulation is that you may only
have one FHA loan at a time.
Borrowers are required to show proof of sufficient
income to demonstrate the ability to pay the FHA mortgage
loan. In an attempt to make the buying process available
to more people, the FHA has relaxed guidelines that include:
bankruptcies that were discharged at least 2 years ago, the
use of alternative credit (utilities, cable TV, auto or medical
insurance premiums, child care, school tuition, consumer store
accounts) in lieu of traditional credit, and higher debt to
income ratios. Also, interest rates for FHA mortgages
and 203k current loan rates are extremely competitive
with conventional rates.
Still looking for more information on New
Jersey FHA mortgage or FHA
203k. Contact us and we'll be happy to discuss any questions you may have.
Just one call can start you on your way
to securing an FHA mortgage loan! Contact Sunquest today
and receive a call back within one business day!
Call
Toll Free
800-379-1829
Click
here
for more information on FHA and 203K Mortgage Loans
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