Completing an FHA New Construction Loan Application

The FHA new construction loan or better known as the 203(k) program is targeted to fund the rehabilitation or improvement of a housing property that a person wants to purchase or refinance. If the home you want to own needs restoration, you can apply for this program.

Completing the Loan Application

The type of home eligible for the FHA new construction loan program is a one-to-four dwelling, therefore, it is the first criteria you need to follow when finding a new property. Once you spotted the home you want to purchase, the following aspects should be observed in the application:

creditworthiness - Make sure that your credit history is of good standing. Your credit credibility affects the approval of your application.

estimation of costs - A financial analysis and estimation of the costs involved in the rehabilitation of the property should be done before submitting a sales contract to the lender.

support from a consultant - The help of a real estate consultant to calculate the project's repair expenses will speed up the loan process and application.

sales contract details - All related house improvement details you wish to be done on the property must be specified. Mention on the contract that you are applying for the 203(k) financing.

selection of mortgage lender - This program is only available to FHA-approved lenders. You can call the Department of Housing office or search the lists of lenders on the HUD website.