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How to ensure you qualify for rehab loans

Whether you are looking forward to making a good deal by purchasing a bargain home and renovating it to make it habitable or you have a kitchen full of outdated and unused appliances that you want to replace, the right rehab loans houston might be the best solution for all your needs.<br><br>

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How to ensure you qualify for rehab loans

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  1. HOW TO ENSURE YOU QUALIFY FOR REHAB LOANS

  2. REHAB LOANS ARE RELATIVELY NEW AND DIFFER FROM THE STANDARD MORTGAGE LOANS AS THEY ARE OFFICIALLY KNOWN AS THE FEDERAL HOUSING ADMINISTRATION’S 203K REHABILITATION MORTGAGE INSURANCE PROGRAM THAT WRAPS RENOVATION AND PURCHASE OR RENOVATION AND REFINANCE COSTS INTO ONE MORTGAGE

  3. THESE LOANS WORK BEST FOR PEOPLE WHO WANT TO BUY OLD HOMES AND RENOVATE THEM OR WANT TO RENOVATE THEIR OLD HOMES INTO NEW ONES AND REQUIRE SUBSTANTIAL CAPITAL TO DO THIS BUT YOU MUST QUALIFY FOR THE LOANS AND MAKE SURE YOU HAVE EVERYTHING IN HAND THAT WILL HELP YOU SECURE THE LOAN

  4. IN ORDER TO QUALIFY FOR THE 203K LOAN, THERE ARE CERTAIN REQUIREMENTS THAT YOU MUST MEET; YOU NEED TO HAVE AT LEAST 620 OR 640 CREDIT SCORE AS THE LENDER WILL CHECK IF YOU ARE CAPABLE ENOUGH OF RETURNING THE LOAN IN THE LONG RUN WITHOUT DECLARING BANKRUPTCY

  5. IN ADDITION TO THIS, YOUR MAXIMUM DEBT-TO-INCOME RATIO CAN ONLY BE 41% TO 45% AND YOU WILL REQUIRE A DOWN PAYMENT OR HOME EQUITY IF YOU ARE FINANCING OF 3.5% OR MORE

  6. YOU WILL HAVE TO SEE THAT THE LOAN AMOUNT THAT INCLUDES BOTH THE PURCHASE AND THE RENOVATION COSTS MUST BE LOWER THAN THE MAXIMUM LOAN LIMIT FOR YOUR AREA AND YOU MUST BE AN OWNER OR THE OCCUPANT OF THE PROPERTY THAT YOU ARE LOOKING FORWARD TO BUYING OR RENOVATING

  7. YOU MUST STUDY THE DOCUMENTS THAT OUTLINE THE QUALIFICATIONS OR INFORMATION REGARDING REHAB LOANS HOUSTON SO THAT YOU ARE WELL- PREPARED AND YOUR CHANCES OF SECURING THE LOAN INCREASE

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