I am a first time home buyer,looking to buy hud,i will have to use 203k loan how will this affect the % rate?

Question

I am looking for a HUD home and the home i am intrested in is Uninsured because it needs heat and air + flooring.I need to get a 203k loan.What does being a first time buyer get you?

Answer 1

Being a first time buyer will get you two things on this deal. First, it allows you to bid during the owner occupant time frame. Second, you get to go FHA at all. That's usually a whole lot better for first time buyers than conventional.

Make sure your Realtor knows how to do HUD foreclosures, and make sure your lender knows how to do 203(K). If you've already picked out a house, surely you've already talked to a loan officer.... right? You need your pre-qual letter to bid.

Lastly, make sure the house is 203(K) eligible. Some are UI, eligible. Some are UI, not eligible.

Oh yeah, one more thing - On grant money, HUD will allow you to use grant money, but NOT the "Legally laundered" kind. As the seller, HUD will not make a "donation" to a non-profit organization, who then makes a "grant" to the buyer.

Answer 2

203k loans will have slightly higher rates and costs than a normal FHA 203b, because they are more difficult to create and have inspections and other things that take place after purchase to ensure the work is done, and to administer the rehab funds properly.

Being a first time buyer will get you no special breaks on that product, if that's what you were hoping for. It could be your 10th home, doesn't matter.

Unless you try to get some grant money from your state or city housing agency to use as your down payment. They may be very willing to help you finance the improvement of a distressed property in the neighborhood you are buying. That's why they exist. Contact your state's housing finance agency, get referrals to any city or even neighborhood fix-up funds that might be available.

Answer 3

in basic terms when you consider which you have credit issues, it does not advise you may no longer purchase a house. something is achievable, so save attempting & do no longer supply up. make certain you have down charge waiting, a reliable interest & possibly a co-signer will help out lots. i'm particular there's a million lender accessible who can help you get the homestead you opt for. think of beneficial. stable success!