The FHA has new guidelines for 203K Loan requirements in 2019. With the 203 K Loan, you can apply for fund to purchase a rehab home and get up to $35,000 cash to make renovations and cosmetic repairs. In the year, 2019 there are new changes that you should know. This will ease up your process to apply for the loan.
Suggested Read: Conforming Loan Limits of 2019
Fha 203k loan requirements 2019
To get 203K Loan 2019, you need to ensure the following requirements:
- Applicant should have No foreclosures, bankruptcies, or short sales in the past 3 years.
- Only FHA-approved Lenders can offer 203k streamline loans.
- The applicant Must be able to prove income.
- Applicant has to pay Downpayment of 3.5%.
- The Minimum credit score of the 203 k loan applicant should be 640.
- One should also have a Stable employment history.
- Applicant should have No more than 1 late payment in past 12 months.
Details of the renovation areas of 203 K Loan
The FHA 203k loan allows any individual to borrow currency using only one loan and that one single loan will be used for both home improvement and a home purchase. When the name of FHA comes, it means, the loans are guaranteed by the FHA.
The allowed work types are mentioned. Also, there are some restrictions which inhibits the loan applicant to spend the money on certain areas. Here is the detail:
Types of work allowed with 203 K loan 2019
- Door, window, exterior siding repair and replacement
- Well repair/replacement
- Plumbing and Electrical repairs
- Basement water-proofing
- Decks, patios, and porches can be repaired, replaced, or installation
- HVAC systems
- Roofs, gutters and downspouts repairs and/or replacement
- Accessibility improvements
- Stabilisation of lead-based paint
Type of Work Not permitted with 203 K Loan 2019
- No repairs can take longer than 3 months to complete
- Major repairs needed to the structure or foundation
- Renovations requiring detailed
- The building of a new pool or hot tub
- Any construction that is not a part of the property
- Adding new rooms or bathrooms
Suggested Read: how much you can earn by putting just 1 hour daily on internet.