88m3
Fast Money & Foreign Objects
Acronym is pretty dubious.
I just got off the phone with fha, might try the private route and see what they they can do for me this week.
I just don't want to rush anything.
Anyone have experience with FHA Loans?
- Thread starter 88m3
- Start date
Acronym is pretty dubious.
I just got off the phone with fha, might try the private route and see what they they can do for me this week.
I just don't want to rush anything.
I have purchased a house with an FHA Loan.
Pro's: 2.5% down as the minimum. Requires an actual FHA certified home Appraisal (this helps negate a lot fo the predatory lending tricks we saw in the bubble market, aka, fluff comps). Only requires a 620 credit score with no open collection accounts. They have multiple types of loans available, their is even a loan called a FHA 203K loan, which lets you buy a fixer upper that needs work, get quotes on upgrading everything you want in the house from roofs and kitchens, to cosmetic issues, and as long as the house will appraise out AFTER all the work is done at what the loan, PLUS the labor will take to repair it, they will lend you the repair money as part of the overall loan. I cannot explain how dope this loan is in words. Let me give you my first hand example:
Foreclosed on house with 3 bedrooms 1 and a half bath, a 2 car garage and 1/3 an acre of land was on the market. Roughly 1850 sqr feet. Built in 1982. No appliances or fixtures were left, needed a new roof and a full kitchen, plus new bathrooms, flooring etc. Price was 229k. A new house with everything done in that town with those specks would go in the mid 300's.
Was approved for 290k. Used a 203k loan through FHA, got the house for 226k. Then, over 6 weeks had a series of 3 different contracts come in to quote out not only the repair work, but upgrades ( i.e. - Putting in sliders off the kitchen, etc). Submitted all the work quotes to FHA. Came back with the best quote of like 62K for a new roof, kitchen, heating system, bathroom fixtures, floor, windows etc. FHA then had me pay for another FHA home appraisal, this one with comps based on the projected value of the home with those upgrades completed. Came in at $295. So that means if I got the work done, the home with be worth $295k, and FHA's total loan amount to me would be $226k, plus the $62k, for a total layout of $288k.
So they agreed, with the 203k loan, to loan me the 62k to fix it, and built it into my total note, because the house would have instant equity, and Id still be within my total approval amount.
Boom, the work gets started, they pay the workers out of an escrow account and I pay the mortgage based off a house for $288k. 12 weeks later, brand new looking house.
3 years later (2 months back to be exact) I sell the house for $342k.
got to buy a fixer upper, customize it to my likings without spending any money down besides my 2.5% on the total note. Then I flipped it 3 plus years later and made like 60k. Thank you FHA!
Pro's: 2.5% down as the minimum. Requires an actual FHA certified home Appraisal (this helps negate a lot fo the predatory lending tricks we saw in the bubble market, aka, fluff comps). Only requires a 620 credit score with no open collection accounts. They have multiple types of loans available, their is even a loan called a FHA 203K loan, which lets you buy a fixer upper that needs work, get quotes on upgrading everything you want in the house from roofs and kitchens, to cosmetic issues, and as long as the house will appraise out AFTER all the work is done at what the loan, PLUS the labor will take to repair it, they will lend you the repair money as part of the overall loan. I cannot explain how dope this loan is in words. Let me give you my first hand example:
Foreclosed on house with 3 bedrooms 1 and a half bath, a 2 car garage and 1/3 an acre of land was on the market. Roughly 1850 sqr feet. Built in 1982. No appliances or fixtures were left, needed a new roof and a full kitchen, plus new bathrooms, flooring etc. Price was 229k. A new house with everything done in that town with those specks would go in the mid 300's.
Was approved for 290k. Used a 203k loan through FHA, got the house for 226k. Then, over 6 weeks had a series of 3 different contracts come in to quote out not only the repair work, but upgrades ( i.e. - Putting in sliders off the kitchen, etc). Submitted all the work quotes to FHA. Came back with the best quote of like 62K for a new roof, kitchen, heating system, bathroom fixtures, floor, windows etc. FHA then had me pay for another FHA home appraisal, this one with comps based on the projected value of the home with those upgrades completed. Came in at $295. So that means if I got the work done, the home with be worth $295k, and FHA's total loan amount to me would be $226k, plus the $62k, for a total layout of $288k.
So they agreed, with the 203k loan, to loan me the 62k to fix it, and built it into my total note, because the house would have instant equity, and Id still be within my total approval amount.
Boom, the work gets started, they pay the workers out of an escrow account and I pay the mortgage based off a house for $288k. 12 weeks later, brand new looking house.
3 years later (2 months back to be exact) I sell the house for $342k.
got to buy a fixer upper, customize it to my likings without spending any money down besides my 2.5% on the total note. Then I flipped it 3 plus years later and made like 60k. Thank you FHA!
88m3
Fast Money & Foreign Objects
I have purchased a house with an FHA Loan.
Pro's: 2.5% down as the minimum. Requires an actual FHA certified home Appraisal (this helps negate a lot fo the predatory lending tricks we saw in the bubble market, aka, fluff comps). Only requires a 620 credit score with no open collection accounts. They have multiple types of loans available, their is even a loan called a FHA 203K loan, which lets you buy a fixer upper that needs work, get quotes on upgrading everything you want in the house from roofs and kitchens, to cosmetic issues, and as long as the house will appraise out AFTER all the work is done at what the loan, PLUS the labor will take to repair it, they will lend you the repair money as part of the overall loan. I cannot explain how dope this loan is in words. Let me give you my first hand example:
Foreclosed on house with 3 bedrooms 1 and a half bath, a 2 car garage and 1/3 an acre of land was on the market. Roughly 1850 sqr feet. Built in 1982. No appliances or fixtures were left, needed a new roof and a full kitchen, plus new bathrooms, flooring etc. Price was 229k. A new house with everything done in that town with those specks would go in the mid 300's.
Was approved for 290k. Used a 203k loan through FHA, got the house for 226k. Then, over 6 weeks had a series of 3 different contracts come in to quote out not only the repair work, but upgrades ( i.e. - Putting in sliders off the kitchen, etc). Submitted all the work quotes to FHA. Came back with the best quote of like 62K for a new roof, kitchen, heating system, bathroom fixtures, floor, windows etc. FHA then had me pay for another FHA home appraisal, this one with comps based on the projected value of the home with those upgrades completed. Came in at $295. So that means if I got the work done, the home with be worth $295k, and FHA's total loan amount to me would be $226k, plus the $62k, for a total layout of $288k.
So they agreed, with the 203k loan, to loan me the 62k to fix it, and built it into my total note, because the house would have instant equity, and Id still be within my total approval amount.
Boom, the work gets started, they pay the workers out of an escrow account and I pay the mortgage based off a house for $288k. 12 weeks later, brand new looking house.
3 years later (2 months back to be exact) I sell the house for $342k.
Good stuff man
