Long Beach California Real Estate Loans

What is FHA 203(k) Financing?

This US Governments housing program has been in existence since the 1990s.  Is purpose allows a home buyer the opportunity to finance into a 30 year fixed mortgage upgrades and repairs they want up to $35000 above and beyond the sales price.  Below outlines how these funds may be utilized.

• Finance your kitchen appliances such as refrigerator, stove built in microwave, dishwasher, hot water heater, built in trash compactor as part of your 30 year fixed FHA loan.  Energy efficient appliances may be eligible for additional rebates from the local utility company.  As just signed by rebates from the local utility company.  As just signed by President Obama, buyers may qualify for up to a $1500 tax credit for energy efficient upgrades too!
• Repairs financed may include: new carpeting, install or refinish hardwood floors, install energy efficient windows, replace a worn leaky roof, replace damaged or worn out kitchen and bathroom fixtures; termite clearance !!!
• Get the electrical and plumbing updated and upgraded.
• Mixed use properties eligible
• Subject to maximum percentage of commercial use.
• 1-4 unit owner occupied homes
• Single family residences, condos and townhomes allowed.
• Licensed general contractor generally needed and required.
• Close escrow in  60 days

Today, we will see three homes with 30 year fixed payments of $1288, $1304 and $2214 respectively!

$289,000 List Price for
9209 Laurel Street Bellflower, Ca 90706

$289,000 list price
$10,115 3.5% FHA down payment
$278,885 base loan amount
$20,000 FHA 203(k) added for upgrades
$298,885 base loan amount

$1,004.00 per month 1st mortgage 5.5% 30 year fixed FHA 203(k)
$50.00 per month estimated home owners insurance
$301.04 per month estimated property taxes
$136.99 per estimated private mortgage insurance
$2,214.76 per month PITI

Estimated closing costs based on a 640 credit score is 4% to 4.5% of the sales price. If the seller pays all closing costs, cash needed is:

$10,115 down payment
$425 FHA 203(k) appraisal
$275 inspection
$10,815 total estimate cash needed

Proposed items to upgrade:

Replace Roof
Energy efficient water heater/dishwasher
Paint interior

$149,000 List Price for
5545 Lime Avenue Long Beach, Ca 90805

$149,000 list price
$5,215 3.5% FHA down payment
$143,785 base loan amount
$30,000 FHA 203(k) added for upgrades
$173,785 base loan amount

$1,004.00 per month 1st mortgage 5.5% 30 year fixed FHA 203(k)
$50.00 per month estimated home owners insurance
$155.21 per month estimated property taxes
$79.65 per estimated private mortgage insurance
$1,288.86 per month PITI

Estimated closing costs based on a 640 credit score is 4% to 4.5% of the sales price. If the seller pays all closing costs, cash needed is:

$5,215 down payment
$425 FHA 203(k) appraisal
$275 inspection
$5,915 total estimate cash needed

Proposed items to upgrade:

All new energy efficient windows and exterior doors
Flooring
All light fixtures
Energy efficient water heater
Wall furnace heater
Paint interior and exterior

$160,000 List Price for
38 East Platt Street Avenue Long Beach, Ca 90805

$160,000 list price
$5,600 3.5% FHA down payment
$154,400 base loan amount
$20,000 FHA 203(k) added for upgrades
$174,400 base loan amount

$1,007.55 per month 1st mortgage 5.5% 30 year fixed FHA 203(k)
$50.00 per month estimated home owners insurance
$166.67 per month estimated property taxes
$79.93 per estimated private mortgage insurance
$1,304.15 per month PITI

Estimated closing costs based on a 640 credit score is 4% to 4.5% of the sales price. If the seller pays all closing costs, cash needed is:

$5,600 down payment
$425 FHA 203(k) appraisal
$275 inspection
$6,300 total estimate cash needed

Proposed items to upgrade:

All new energy efficient windows and exterior doors
Flooring
All light fixtures
Energy efficient water heater
Wall furnace heater
Paint interior and exterior
Repair kitchen cabinets/install new sink

Kirk Mulhearn, a Long Beach Real Estate Broker,manages Prudential California Realty. "The Bixby Knolls Office," he also co-manages net branch of GEM Mortgage, a direct lender specializing in the FHA, VA, and conventional financing.  You may contact him at 562-989-4608  ext. 110 

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