Owasso FHA 203k Loans Covers Remodels
If you are an Owasso resident and you are thinking to remodel your home, be sure to call 1st Capital Mortgage today. At 1st Capital Mortgage, we offer a number different loan and lending options that will be able to suit you well. We have various loans such as conventional loans, FHA 203B loans, jumbo loans and also the Owasso FHA 203K loans. This loan is perfect if you’re wanting to make renovations and repairs to your home. If you would like to learn more about our various lending options, then give our team a call today. We are available to help assist you if you call us at 918-274-1519.
On this Loan Option Featured webpage, we will be covering the definition of an Owasso FHA 203K loans and all the various guidelines that are associated with this loan. The first step in doing this is defining what this type of loan really is and how it functions. The FHA 203K loan is simply a loan program that will provide the funding to a home that requires renovations or remodels. This is a great lending option if you are eager to make improvements to your house. This loan will not only cover the cost of additions to a home, but will also cover the cost of other types of renovations as well.
Is also important to remember that there are two different types of Owasso FHA 203K loans. The first type of loan is the normal 203K loan. The normal 203K loan is for properties that require various structural repairs. These repairs can include things like a new roof, adding another room to the house, or things like foundational work. There is also a second type of 203K loan which is the streamlined 203K. The streamlined 203K loan is perfect for nonstructural repairs. This included anything from painting, new appliances, or anything else is a nonstructural repair.
It is important to note that there is a minimum loan amount for the Owasso FHA 203K loans. The government established minimum loan amount is necessary because typical home repairs are above this amount and due to the proper management of this type of loan, the amount needs to be big enough to be worth the effort. The established minimum amount for the FHA 203K loan is $5000. You must have at least $5000 worth of home repairs in order to qualify for the loan. We found that this loan amount is a logical minimal benchmark for those houses that requires repairs.
Is important to note that there is no maximum loan amount for this type of loan. Typically, having to do construction repairs can add up to be a very expensive investment. There is no maximum loan amount because of the costly nature of this endeavor. If you would like to learn more about the minimum loan amount, please give our team a call today. If you have questions regarding a loan for your home repair even if it is very involved and potentially expensive, then our team would love to help you as well. You can reach us by dialing the number above.
In order to qualify for the Owasso FHA 203K loan, you must have two additional external resources to help you at the beginning of the loan and throughout the process of construction repairs.. The first of these resources is a home appraiser. You must have a certified home appraiser that will determine the value of your home as well as the various repairs and renovations that are associated with the loan. This is a first step in order to qualify for the Owasso FHA 203K loans. You must also hire an FHA consultant as well. The FHA consultant is the individual who will actually oversee the bidding process and the construction process for you. How do they oversee this process? They will be involved in authorizing the release of the funding in order to pay for the various construction or contractors as they complete the repairs during the home improvement process.
There are many differences between the Owasso FHA 203K loans and other loans available within the loan offerings of 1st Capital Mortgage. The loan we will compare to the FHA 203K loan is the FHA 203B loan – though it sounds similar, each of these loans are very different. The reason why we compare these two loans is because they’re often confused for each other. The Oklahoma FHA 203B loan is a permanent financing loan from the very beginning. Unlike this loan, the FHA 203K loan only deals with renovations and construction repairs done to your existing home. The expenses involved with renovations and constructions can eventually be rolled into permanent financing, if it is so desired by the homeowner.
The next important loan comparison is the differences between the Owasso FHA 203K loans and the more popular conventional loan. There are two main differences between these two loans. First, the FHA 203K loans have mortgage insurance that is required to be paid over the entire life of the mortgage. That means, unlike conventional loans, your loan mortgage insurance will not be terminated if the loan-to-value ratio ever plummets below the 78% mark. If you purchased a conventional loan, and the loan-to-value ratio falls below 78%, then your loan mortgage insurance can be discontinued and terminated.
With the conventional loan, it is also important to consider the role of mortgage insurance when purchasing a home. Mortgage insurance is helpful for the lending organization in order to help cover those unexpected issues that may arise whenever there is non-payment of the mortgage by the homeowner. But, it is important to remember that mortgage insurance will make your mortgage payment a little bit more expensive. With a conventional loan, if you’re able to put 20% down on your home, typically mortgage insurance is not required. In order to discover whether or not you should buy mortgage insurance, then please call our team today. We love to help you with any questions you may have about mortgage insurance as it pertains to a conventional loan or the Owasso FHA 203K loan.
In summary, it is important to remember that the FHA 203K loan is designed to provide the funding for renovations for your home. There are two types of FHA 203K loans which is the normal and the streamlined. There is a minimum loan amount of $5000 and there’s no maximum loan amount on FHA 203K loans. You will need to hire an FHA consultant and a certified home appraiser in order to qualify for this loan. If you have any other questions, please give our team a call today by dialing 918-274-1519 today.