Can i use a fha 203k loan to build on my property, a back house or living room extension?

My infoJacob C Haddan720-210-7898E:jacob@jacobdenver.com

You cannot add a building using a 203K, but you can do an addition. However, it's probably not the best loan product to use if you have equity. FHA has some pretty hefty monthly mortgage insurance premiums, plus they charge 1.75% upfront. And using the 203K, you have to have an FHA consultant which can cost you another $3000 in additional costs.. the better way to go would be a cash out refinance using conventional financing. You can borrow up to 90% of your homes current value, and the monthly MI is $44 for every $100K borrowed. the best way to know all your options would be to contact a local mortgage broker and let him look at your complete scenario.. he should be able to tell you how much you can expect to pull from your homes value for the renovations.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Yes. You can do major home improvements with the full 203k renovation and I have several investor options for this product. Contact me when your able.

Generally with a 203k loan you have to do necessary home repairs - adding square footage generally does not qualify. You will want to check with a local lender first to see if what you have in mind will qualify for a 203k loan.

Yes, you can use a 203k for an addition. Building a guest house or similar would probably not be allowed, but individual lenders may have their own requirements that go beyond FHA rules. If you are a reasonably well qualified borrower, you'll be better off with a conventional renovation loan which will likely have lower PMI costs and unlike FHA, conventional PMI does not continue for the life of the loan (which is now the case with FHA) - all those factors make the conventional option better if it fits your situation. I can help: pdumouchel@primelending.com or 843-619-6025 Look forward to hearing from you!

FHA 203k is for repairs, not for new construction or expansion.

Absolutely , the FHA 203K loan is a great program and can be used for pourchases or refinances.emarez@thefederalsavingsbank.com

On a full 203k, you can do additions... but not build a whole home.

It is important to note that unless you have the equity in your home to cover the home improvements, the FHA 203K can be a wonderful loan. If your credit is fair to good, then it likely can be a great way to go. More likely, with 3.5% down payment it is theway to go on a purchase loan. You can even have mortgage payments includedin the loan while you are waiting for your home renovation to be completed.Yes, the upfront mortgage insurance financed into the loan and the monthly M I payments have crept up quite alot from a few years ago, and the previous requirement of keeping PMI to 5 years and 78% loan to value has gone to an unlimited number of years. However, you may well catch a very good rate to be able to refinance sooner than later and get free of mortgage insurance. Often the value can increase substantially with all the improvements.With historically low rates currently, one could compare the loan with the monthly mortgage insurance side by side with rates offered during much of the past 10 yearsand discover your total monthly payment is just as good or better, including mortgage insurance! It is important to get qualified and go over your options with someone experienced at doing 203K loans as well as providing conventional options!