Here’s how our home loan process works:
- Complete our simple 203K Loan Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Choose the offer that best fits your needs
203K Loan Process & Requirements in Fort Myers, FL
The main benefit of these loans is that they give you the ability to buy a home in need of repairs that you might not otherwise have been able to afford to buy. Plus, the down payment requirements are minimal, and often you get decent interest rates.
Our 203K Loan Rates Are Low & Our Process is Quick & Painless
203k Loans: What are They, What are the Requirements, and Why are They Beneficial to Fort Myers Homeowners?
An FHA 203K loan is a loan backed by the federal government and given to buyers who want to buy a damaged or older home and do repairs on it. Here’s how it works: Let’s say you want to buy a home that needs a brand-new bathroom and kitchen. An FHA 203K lender would then give you the money to buy (or refinance) the house plus the money to do the necessary renovations to the kitchen and bathroom.
Often the loan will also include: 1) an up to 20% “contingency reserve” so that you will have the funds to complete the remodel in the event it ends up costing more than the estimates suggested and/or 2) a provision that gives you up to about six months of mortgage payments so you can live elsewhere while you’re remodeling, but still pay the mortgage payments on the new home:
- We’re here to make the 203K home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE 203K Loan Qualifier.
- We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you – whether you’re a first-time home buyer or a seasoned investor.
What Is a 203k Loan? How Can It Help Fort Myers Homeowners?
So how did 203k come to be? The federal government, more specifically the Federal Housing Administration (FHA), identified a gap in financing available for the purchase and/or rehabilitation of older or damaged properties. To consumers, a 203k is a “fixer-upper” loan. To lenders and the federal government, 203k is actually a mortgage insurance.
Traditionally, homebuyers would obtain a mortgage for purchase, but if repairs were needed they would have to apply for a separate loan, like a Home Equity Line of Credit. The problem that sometimes occurs is that there is not enough equity to loan against, or there is, but the interest rates will be high.
Not only do 203k loans in Fort Myers, FL help people buy and repair a home, they can also provide an opportunity to buy “more home” because they will be using their own sweat equity in fixing it up. 203k loans are also great for the community because they help to eliminate blight and vacant properties and increase area property values.
Who Qualifies for a 203k Loan in Fort Myers, FL? What Are the Requirements?
While 203k loans are a great option for a first-time home buyer, they are available to many potential buyers, and as a refinance product can help current owners complete necessary renovation work. Some of the 203k loan requirements in Fort Myers, FL are:
- Must have a minimum FICO score of 500, but as with traditional mortgages, the higher your credit score, the lower your interest rate.
- With a FICO score of 580 or higher, only 3.5% down payment is required. 10% is required if your credit score is 500-579.
- Must require a minimum repair cost of $5,000.
- Cannot exceed FHA loan limits. For example, in Lee County the 2021 limit for a single living unit is $356,362 to $685,400 for a 4-unit property.
- The property must be your primary residence.
- The property must meet FHA minimum property standards. In general, it must be safe, sound, and secure. An inspection and appraisal must be conducted by a HUD-approved appraiser.
Contact Fort Myers Mortgage Experts in Fort Myers, FL for your Free Quote
Do you have your eye on a property that would be ideal for a 203k loan in Fort Myers, FL? Contact us today to discuss loan options, receive a free quote, and experience the DiGregorio Difference for yourself, no matter where you are in the home buying process.
