The 203K rehab Maryland home loan financing is a Government loan, insured by the FHA home loan program.
This program is available to most U.S. Citizen meeting the credit, income and asset requirements and purchasing a property that meets this loans property guidelines.
The 203k is designed to assist home buyers when purchasing a property that needs repairs. There are two types of 203k rehab loans.
1. The first is a streamline. This loan type is for homes requiring less than $35,000 of repairs. this amount must include contingency, permits, title fees, draw fees and more. So as an example, these fees could be $5,000 and that would leave $30,000 maximum for the repairs. This loan does not require a 203k specialist but it is recommended that the buyer has one.
This loan is designed for non-structural repairs.
2. The full 203k rehab home loan is for amounts greater $35,000 and can include structural repairs of the property. A full 203k requires a 203k specialist to determine feasibility of the project, ensures it meets FHA guidelines, sets up draw schedules and other responsibilities. A FHA 203k home loan approved lender may be able to recommend a 203k specialist.
The borrower's general requirements for the 203k FHA loan
are the same for the standard FHA lending requirements.
The buyers must still have the 3.5% down payment as with any standard FHA Loan