Los Angeles FHA 203(k) Home Renovation Loan
Whether you are an individual who wants to buy a fixer upper or refinance a home that needs repairs or rehabilitation, the federal government has a program that makes it easier. The Federal Housing Administration (FHA) will help you rehab a home with its 203(k) home renovation loan program, provided that the dwelling is your primary residence.
There are many homes available for sale that are in need of repairs because the sellers did not have enough money to keep up with repairs over the years, or they are foreclosures that angry owners deliberately damaged before departing, or rental units that saw heavy wear and tear from numerous tenants. Moreover, many homeowners are struggling to find a way to pay for needed repairs of homes they want to stay in.
Any individual seeking a Los Angeles mortgage can apply for a loan to rehab or repair a home if they will be or already are the owner/occupant. Additionally, certain qualified non-profit organizations can also utilize the FHA 203(k) home renovation loan. However, the program is not for investors.
Without this program, an individual would have to have cash to make necessary repairs before they could get a mortgage, or refinance an existing mortgage. However, with the FHA 203(k) home renovation loan program, American Real Estate Loans can help with the mortgage or refinancing you need.
FHA 203(k) Home Purchase Loans
An FHA 203(k) loan can be used one of two ways to purchase a dwelling, according to the HUD Website. The first is to buy an existing home and the land upon which it is located and rehab it. The second is to buy a home located elsewhere and move it onto a new foundation on the mortgaged land and rehab it there.
If the 203(k) loan is for buying and rehabbing an existing home already located on the property, the program rules require the mortgage to be the first lien against the property and the proceeds from that mortgage must be available before rehabilitation begins.
If the FHA loan is for buying and moving a house to a new foundation and rehabbing it there, the mortgage must also be first lien against the property. However, the buyer will have to have the money to move the house or make arrangements because no loan proceeds for moving the dwelling will be paid out until after it is already attached to its new foundation, according to HUD.
FHA 203(k) Mortgage Refinance
The FHA 203(k) loan program can also be used to refinance any existing liens on a property for cash strapped owners who cannot afford to make needed repairs or rehabilitate the home in which they already live.
Home Renovation Mortgage Lender
American Real Estate Loans offers home mortgages in Los Angeles County, Orange County, Riverside County and San Bernardino County, including the FHA 203(k) home renovation mortgage program for home purchase and mortgage refinance. If you are seeking a home renovation lender in Los Angeles, American Real Estate Loans can quickly and easily pre-qualify you for this program today. Simply fill out our free secure online application and our mortgage professionals will reach you as soon as possible.