Corporate Contact Information 191 H NC Hwy 42 N - Asheboro, NC 27203 Asheboro NC Phone: (336) 625-4992 Asheboro NC Fax: (336) 625-0911

 

What is an FHA 203K Rehabilitation Loan?

What Documents Do I Need?

What is the Process?
Most mortgage financing plans provide only permanent financing. That is, a lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made. When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing for the rehabilitation; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The FHA 203(k) program was designed to address this situation. Now, you can get just one mortgage loan, at a long-term fixed rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To be eligible, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided the existing foundation system remains in place. An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.

Disclosures and License

Wolfe Financial, Inc, dba Integrity Mortgage Group is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status or age.

 

 

Wolfe Financial, Inc, dba Integrity Mortgage Group is registered in the Nationwide Mortgage Licensing System (69371) and licensed in the following states. Alabama Consumer Credit License (MC-21398), Georgia Mortgage Lender License (23886), Indiana-DFI First Lien Mortgage Lending License (11108), Kentucky Mortgage Company License (MC76987), Louisiana Residential Mortgage Lending License (69371), North Carolina Mortgage Branch License (L-145206), South Carolina BFI Mortgage Lender/Servicer License (MLS-69371 OTN #1 ), Tennessee Mortgage License (112265), Texas – SML Mortgage Banker Registration (82400).