Property of the house: it is part of the American dream. A place to call him, to raise his family, a sanctuary when the world becomes too much; A house is all that and much more. Unfortunately, many people think that home ownership is out of reach. They believe that because of a lack of credit history, low income, or any other amount, they will not be able to take out a mortgage at a reasonable and affordable interest rate. Fortunately for them, the Federal Housing Administration offers several real estate programs, including the FHA Rehabilitation Loan.
The rehab loan fha is one of FHA’s programs designed to help new homeowners obtain affordable mortgages. It is specially designed for potential homeowners who wish to buy and rehabilitate a home.
By looking in the housing market for a place to call it, many homeowners are considering buying a “home for repairs” for the first time. A good source of “repairers” is HUD Homes for Sale. Often, homes that could use remodeling are the cheapest on the market. This, combined with the ability to reshape according to their own specifications, is attracting many homeowners to these “repairs” for the first time.
It is for these people that the FHA Rehabilitation Loan is especially helpful
Traditionally, an owner who wants to renovate a house should get two loans: one for the acquisition of property and the other for rehabilitation. Then, when the property is completed, they must acquire a third permanent mortgage to pay the first two loans. However, with an FHA Rehabilitation Loan, potential homeowners can acquire a mortgage, both for property acquisition and for rehabilitation.
It is important to keep in mind that the FHA itself does not lend money
An FHA Rehabilitation Loan is a loan offered by a bank or mortgage company and insured against default by the FHA. Through this program, lenders can offer lower upfront payments and lower interest rates, which they could not do otherwise for homeowners for the first time.
Many first-time homeowners are eligible for these loans insured by the FHA. There are no income limits and there is no need for perfect credit. And the benefits of an FHA Rehabilitation Loan over a traditional loan are clear: they are easier to qualify, have lower down payments and lower interest rates, and are easier to qualify.
So, if you are one of the millions of Americans who are willing to own your own home, contact an approved FHA lender today. The dream of remodeling your first home is probably closer than you think because of the availability of an FHA Rehabilitation Loan.