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Macomb County MI Real estate

Macomb County MI real estate blog

FHA 203K for purchasing & rehabbing a home in Macomb County – part II

June 22nd, 2010 · No Comments · fha mortgages and first time home buyers, tips for home buyers

A few days ago I wrote about the 2 part appraisal that is needed in order to successfully use a 203K FHA mortgage.  Another important part of this mortgage that I want to let home buyers know about is that the qualifying for this mortgage is also a bit different than for a regular FHA mortgage.

If I use the same example purchase that I did the other day ($50,000 home purchase plus $20,000 in estimated repairs) the buyers agent and the mortgage lender would look at the total purchase power of the buyer before proceeding.   Let’s say that you are qualified to obtain a $60,000 mortgage. The home in the example above would need to be purchased for $40,000 in order to add on the $20,000 repair costs so that you didn’t exceed the $60,000 total purchase price.

As always, sit down with your buyers agent and go over everything before writing your offer to purchase.  Having time to numbers crunch will make the process go so much more smoothly.

~Kris Wales~  A partner for your real estate needs in Macomb County MI
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Important copyright information: All photos were taken by Kris Wales. Do not copy and use photos for your own use, whether it be for personal or commercial purpose. All articles were written by Kris Wales. Once again, do not copy and use for your own purposes. Important disclaimer: Views expressed on the blog by the author and commenters do not express the views of Keller Williams Realty. All information contained is deemed to be reliable at the time of posting but not guaranteed.