We’ve talked to several people in the last couple of days who want to purchase homes using FHA’s 3.5% down payment program… and they are trying to purchase some “unusual” properties. (Click here for more on 2010 Appraisal Requirements)
Here are some GENERAL notes:
- FHA 203K loans: These loans are “construction loans” that FHA makes. If you have a $100,000 property… and you make $30,000 in repairs, you need to make a downpayment of 3.5% of $130,000. Now there’s more to the program – but the main thing to remember is that FHA IS FOR OWNER OCCUPIED LOANS ONLY. If you are not going to live in the property – it’s not going to work.
- TRI-PLEX: An FHA loan on a TriPlex means that there are 3 units TOGETHER on one foundation… not 40 acres with 3 buildings on it. I know that’s confusing, but that’s the way FHA rules on what a Tri-Plex is.
- Property with more value in the LAND than the house. This probably isn’t going to work. FHA is in the business of making HOME loans. They don’t really like deals with more value in the LAND (then they consider it a LAND loan). I personally refer those folks to their local USDA Home Loan office, to see if they can help them.
- Underground Homes, Log Cabins, Geodesic Domes, Mobile Homes, and Tree Houses: It’s really hard to get FHA to make loans on these properties. If you have a NEWER Manufactured Home, in NC BB&T might be a good place to start… if it’s older, and on a permanent foundation – we recommend starting with Wells Fargo. That’s not to say that you can’t finance any of these kinds of property with FHA… just that you need to be in an AREA where there are recently sold, similar properties for comparable sales.
If you are considering a home loan in NC, and you want to get a FHA Mortgage Loan, Call Steve and Eleanor Thorne, FHA Experts 919-649-5058