• What is the minimum down paymet required for an FHA 203K loan?

The minimum down payment required is 3,5%

• Does the $8000 first time homebuyer tax credit apply to FHA 203K loans?

Yes, the first time homebuyer credit applies to all purchases until December 1st, 2009

• Are there any differences in interest rates between FHA 203K loans and normal FHA loans?

Yes, there is a slight premium in interest rates that you will pay for an FHA 203K loan.  You will need to talk with one of our consultants to see the exact terms; but you will see a .25% difference in interest rate on average

• What is the minimum credit score for an FHA 203K loan?

The minimum credit score for any type of FHA loan with our company is 620

• Is there any limitations on the improvements that can be done to the property?

Yes, there are limitations on the improvements to the property.  Luxury improvements to the property are not allowed but please contact one of our consultants for specific questions in regards to this topic

• Can the FHA 203K loan be used on new construction homes?

No, a certificate of occupancy must have been isssued on the property for at least 12 months prior to the use of an FHA 203K loan

• Can the FHA 203K loan be used on non-owner occupant properties?

No, the 203K loan must be used on a primary residence purchase, or, a primary residence refinance only

• Are there any additional fees that go into an FHA 203K loan?

Yes, there are different areas of the loan that will require additional costs the borrower.  The contractor, FHA Consultant and required inspections will add additional costs to the transaction as well.  Please contact one of our FHA consultants for specific questions on this subject