FHA has an “old” program that’s being used in a “new” way!
The FHA 203K renovation loan program is designed to help folks purchase homes that need a few repairs… and frankly, many properties that are purchased after a foreclosure, are perfect for this program. There are Maximum FHA 203k Renovation Loan Limits which vary per county in NC.
Folks who lose their home in foreclosure generally did not have extra money to do some of the upkeep and repairs that needed to be done in the past few years. So you can get a “deal” on the home – but it really needs to be updated!
With the FHA 203K renovation loan program here’s what you can do:
- Purchase home with 3.5% down (You might be able to get a Grant for 3% of the Down payment)
- Make up to $35,000 in repairs.
So, if you purchase a home for $100,000 and it needs $20,000 worth of repairs… you would get a quote from the contractor (honestly does not have to be a licensed contractor), and we get an appraisal based upon the “future value.” Let’s say the appraiser agrees that you are going to have a property worth $120,000 once these repairs are done. We will base your loan on the $120,000 – the contractor gets $10,000 at closing (half of the repairs), and will get the remainder at the time they have it all finished.
No “Major” structural work can be done with this loan – so it’s not for adding a kitchen. You can’t change the “footprint” of the home with a FHA 203k Renovation Loan.
FHA eligibility requirements make no restrictions on the maximum income to qualify for a FHA home loan, and there are no restrictions on where the property is located (like there are with USDA Home Loans). FHA does set a maximum loan limit per County, and it updates those maximum loan limits each year.
2014 FHA 203K Maximum Loan Limits in NC By Metro Area
Most of the 100 Counties in NC have a maximum FHA 203k Renovation Loan Limit of $271,050, however, larger metropolitan areas have some variations. View FHA Loan Limits for each NC County: 2013 versus 2014
Asheville NC /Buncombe County Maximum FHA 203k Renovation Loan Limit in 2014 is $271,050.
Charlotte NC / Mecklenburg County Maximum FHA 203k Renovation Loan Limit in 2014 is $271,050. The maximum FHA Loan Limit is also adjusted for Anson County, Cabarrus County, Union County, and Gaston County – meaning Belmont, Gastonia, Matthews and Monroe, Mooreville and Iredell County all have a FHA 203k Maximum Loan Limit of $271,050
Raleigh NC / Wake County Maximum FHA 203k Renovation Loan Limit in 2014 is $280,600. The Maximum FHA 203k Renovation Loan for Clayton, and Johnston County and Franklin County in 2014 is also $280,600.
Cumberland, Harnett and Granville County (including Fayetteville, NC) have a maximum FHA 203k Renovation Loan Limit of $271,050.
Wilmington NC / New Hanover County Maximum FHA 203k Renovation Loan Limit in 2014 is $271,050. The Maximum FHA 203k Renovation Loan Limit for Surf City and Pender County is also $271,050, as well as Brunswick County and Southport NC.
Jacksonville, NC / Onslow County FHA 203k Renovation Loan Limit in 2014 is $271,050.
Morehead NC / Carteret County FHA 203k Renovation Loan Limit in 2014 is $271,050.
Elizabeth City NC / Camden County FHA 203k Renovation Loan Limit in 2014 is $625,500. That’s down from the Elizabeth City, NC area Maximum FHA 203k Loan Limit in 2013 of $729,500. Pasquotank County, and Perquimans County will also saw FHA 203k Loan Limit changes down to $625,500.
Kill Devil Hills / Dare County FHA 203k Renovation Maximum Loan Limits in 2014 changed to $391,000.
Durham NC / Durham County Maximum FHA 203k Renovation Loan Limit in 2014 is $334,650. The Chapel Hill, NC FHA 203k Maximum Loan Limit for 2014 is also $334,650. Person County, and Roxboro NC also have a maximum FHA 203k Maximum Loan Limit of $334,650 in 2014.
Winston Salem NC/ Forsyth County Maximum FHA 203k Loan Limits in 2014 is $271,050. High Point is actually in multiple counties, including Forsyth, and if you are interested in a FHA Loan in High Point, you should look at the County limit for the part of town you are interested in.
Greensboro, NC / Guilford County Maximum FHA 203K Maximum Loan Limits in 2014 is $271,050.This is unchanged from the 2013 FHA Maximum Loan Limit for Guilford County, Alamance County and Burlington, NC maximum FHA 203k Renovation Loan Limits are also $271,050 in 2014.
Greenville NC / Pitt County Maximum FHA 203k Renovation Loan Limits for 2014 is $271,050
Have a few more questions about the FHA 203k Renovation Loan Limit in 2014 and how to use the FHA 203k Renovation Loan program to buy a foreclosed home in NC? Give us a call! Steve and Eleanor Thorne 919 649 5058. Connect with us on Google Plus or Facebook!
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Applied for a loan must have been submitted as conventional loan, should have been processed as purchase as is–asked to put up escrow–they stated no–loan officer stated the 203k loan would take too long to process–trying to close–any answers
Bertha – the 203K loan does take a little longer to process, simply because you have to get the letters from the contractors. Doing an “as is” loan when there are repairs that need to be done is difficult if not impossible. If the property was owned by Fannie or Freddie there are renovation loans for those properties. Call us if we can help!