Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program—that make it possible for you to become a first-time home buyer.
Make Your First Home Purchase Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By getting out of the renter’s game and locking in low interest rates, you can begin a lifelong journey of wealth building.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you.
What You Need to Know About First-Time Home Buying
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many first-time home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some first-time home buyers’ terms, it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
Find favorable terms. When you approach it the right way, your first home purchase can be a door to great terms that help you with your monthly budget.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
Taylor was fantastic to work with! She was always there for every single question along the way and a lot of fun. If you are looking for a lending company, give Taylor a call and she (and of course the whole team too 😁) will help you.- K Frith.
Lee came recommended by high school friend & local Portland realtor, Joel Turgo. She was patient, kind, and thorough with representing us. Working with Lee Boone and Acadia was an exceptional experience, she answered our questions promptly, even though there was a time difference (we are CDT). We were most impressed, in-spite of COVID-related challenges, she managed to organize/file our paperwork in such a way that we were able to close two weeks early. Thanks Lee, you're a saint!- Jon Youngflesh.
Lee came recommended by high school friend & local Portland realtor, Joel Turgo. She was patient, kind, and thorough with representing us. Working with Lee Boone and Acadia was an exceptional experience, she answered our questions promptly, even though there was a time difference (we are CDT). We were most impressed, in-spite of COVID-related challenges, she managed to organize/file our paperwork in such a way that we were able to close two weeks early. Thanks Lee, you're a saint!- Jonathan & Rowena Youngflesh.
I can't say enough great things about working with Lee Boone! She was absolutely fantastic! We initially worked with her on a refinance of a second home, she was incredibly responsive, day or night and very knowledgeable. I had delayed refinancing because I was worried about all the "work" that went into a refinance, but the online portal for docs, paired with Lee and team's efficiency made this a 5 star experience. So much so, that just 1 month after we refinanced, we purchased another home and financed through her. She had all my documents already, and it was even easier. Don't hesitate to call Lee and work with Acadia!- Caitlin McCown.
This was our second time working with Lee and the team at Acadia Lending. Lee provides exceptional communication, seemingly 24/7, and the team is well prepared at every step of the process.- Shane Tyack.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What Do First-Time Home Buyers Need to Know About Buying a Home?
Can I do the work myself?
No. Both types of 203(k) loans require a licensed contractor to complete the work.
Is there a maximum dollar amount for repairs?
There is no maximum repair amount. However, your loan amount will be determined by several factors, including the FHA County Loan Limit.
What if we can’t live in our fixer-upper while we renovate? Would I need to start making mortgage payments right away?
The short answer is: No! With the Standard 203k, you can finance up to six months of mortgage payments into your loan, provided that your HUD Consultant (a third-party plan reviewer required on Standard 203k Loans) determines that the home is uninhabitable. This would eliminate the need for you to make two housing payments at once.
When and how does my contractor get paid for the work?
With the Standard 203K loan, no funds are given to the contractor in advance. Draws to the contractor are made as work progresses and phases are completed. Draw inspections will verify that the work has been completed. Up to five draws can be taken.