Are you aware of the properties that are eligible for an FHA home loan? The answer may come as a surprise since many people assume that the only homes suitable for buying must be already finished, classic suburban dwellings.
But there are other kinds of homes you can purchase with an FHA loan.
Are you aware of the possibilities?
FHA Loans for Constructions which are Opened Just Once
Rather than hunting for a house that is already built, why not consider having one put up from the start?
Home buyers who are new to the process can do this with a FHA One-Time Close construction loan. This is available for those who want to construct a house from the ground up.
The lender you select for your One-Time Close loan can determine the required FICO score as well as the type of residence accepted.
In addition to the common expenses associated with home loan financing, such as appraisal fees and inspections, you must also plan for the extra costs of using architectural plans, contractors, and other third parties.
FHA Financial Assistance for Properties Requiring Updating
Enquire with your FHA lender concerning the FHA 203(k) rehab loan which can be acquired as a refinance loan. This FHA 203(k) type of mortgage permits you to buy, then rehab, or refinance and then rehab, a house you are living in or wish to use as your main residence.
When it comes to FHA loans, there is no difference in the FICO score requirements from what is necessary for other loans. That means the same financial criteria applies for these loans as it does for purchasing existing construction. Although individual lenders may have extra criteria, it is beneficial to shop around for a lender that is able to work with your financial needs and objectives.
FHA Loans for Condominiums
When it comes to FHA condo loans, there are some special conditions that must be met in order to secure one. Nonetheless, it is still possible to purchase a condo in a project that is approved by the FHA.
Before making a decision, it is a good idea to read the bylaws and covenants of the Condo Owner’s Association or similar organization that oversees the project, in order to make sure that the condo is the right fit for you.
FHA Home Loans for Properties with Combined Purposes
In certain areas, properties can be classified as either residential-only or mixed use. If you want to buy a home with an FHA mortgage to be used as your primary residence, it may be possible to purchase a mixed-use property.
However, you are not able to use an FHA loan to buy an investment property, but if at least 51% of the space is dedicated to a residence, it could be eligible if it meets FHA and lender requirements.