FHA 203k Loan in Jackson County, Florida

If you're interested in taking advantage of this great program, then it's vital that you fully understand everything about the 203k loan before you get started on your project.

In this guide, we'll walk you through everything there is to know about the 203k loan, including what it is, types of FHA 203K loan, how to qualify, the application process, and how it can help you get the most of your current home.

We'll also discuss the five best desserts in Jackson County, Florida, and where to find them. Read on to learn more.

The Basics of FHA 203K Loans

The 203k home improvement loan was created by the Federal Housing Administration (FHA) to help homeowners make substantial repairs to their property that would increase its value or comfortability.

With an FHA 203k loan, you can finance up to 110% of the home's after-repair value, meaning you can cover the home's purchase price plus the cost of any necessary repairs or renovations.

Types of FHA 203K Loans

There are several types of FHA 203K loans. Still, they're all geared towards helping borrowers meet their financial needs by making the loan more affordable and more accessible to qualify for than other types of home improvement loans.

Read on to learn more about these FHA 203K loans and how they work.

FHA 203K Standard Loan

The FHA 203K Standard Loan is intended for homes that need significant repairs. You can use these loans to buy or refinance a home, and the cost of repairs is rolled into your mortgage.

This loan is perfect for buyers looking for a fixer-upper because it allows them to finance both the purchase price and the cost of repairs. The minimum repair cost financed with a Standard 203K loan is $5,000, and the FHA loan maximum limit will apply.

Your home must require structural work that includes non-safety landscaping, or your renovations cost more than $35,000 to qualify for this FHA 203K Standard loan. However, you must hire a HUD consultant and a HUD-accredited contractor.

HUD's consultant will ensure that all minimum property requirements have been met and that your contractor completed all work as agreed in the contract. Here are some examples of renovations that qualify for an FHA 203K in Jackson County, Florida:

• Repair the pool
• Build a detached garage
• Finish the attic or basement
• Revamp foundational issues
• Build a retaining wall to prevent flooding
• Knock down walls to create the floor plan
• Construct an addition to add square footage
• Expand the size of the windows to improve lighting
• Expand the size of your kitchen by extending into the dining room

FHA 203K Limited Loans

The FHA 203K Limited Loan is perfect for projects that don't require structural repairs or changes, such as painting, appliances, and minor repairs. This loan provides a maximum of $35,000 in rehabilitation funds, which is excellent for less expensive projects.

With the Limited rehabilitation loan, you don't need to hire a HUD-approved consultant. You will provide a written work plan as evidence of your understanding of the contractor's bid. Furthermore, this loan can't be used to pay off a mortgage. The eligible improvements for an FHA 203K loan are as follows:

• Roof repairs
• Septic repairs
• Siding replacement
• Flooring refinishing
• Tub and shower replacement
• Add gutters and downspouts
• Replacement for kitchen and baths countertops
• Update electrical, HVAC, and plumbing systems
• Replacement of windows to improve energy efficiency

FHA 203K Homestyle Loan

HomeStyle renovation loans are conventional mortgages allowing the borrower to repair the property permanently. This type of loan can be used for structural and non-structural repairs on the property. A site's landscaping and amenities are also permitted. The following are the renovation projects eligible for an FHA 203K Homestyle Loan:

• Building a pool
• Repairing a well
• Adding new carpet
• Updating all fixtures
• Add an on-suite bath
• Creating an open floor plan
• Remediating lead-based paint
• Add new kitchen appliances.
• Building the attic and putting in dormer windows
• Creating curb appeal by changing the fascia of your home

Qualifying for an FHA 203K Loan Program in Jackson County, Florida

You may have heard these loans referred to as FHA Streamline loans because of the streamlined qualification process, but don't let that confuse you into thinking that you don't have to pass the necessary eligibility requirements like any other loan program.

Following the FHA-specific guidelines, you must meet specific criteria to qualify for an FHA 203K loan. The following eligibility requirements will give you an idea of what you need to do to qualify for one of these loans:

Credit Score

To qualify for an FHA 203K loan program, you'll need to have a credit score of 620 or higher. This is the minimum credit score required by the program, and it's important to remember that your credit score may impact your down payment.

The minimum down payment for an FHA 203(k) loan is 3.5% if your credit score is 620 or higher. The down payment will be 10% if your credit score range between 580 and 619.

Debt-to-Income Ratio (DTI)

Your debt-to-income ratio is critical in determining whether you're eligible for an FHA 203K loan. This ratio compares your monthly debts to your monthly income, which must be less than 43% to qualify.

To calculate your DTI, add up all your monthly debts (including your mortgage, car, student loans, credit card payments, etc.) and divide that number by your gross monthly income.

Loan-to-Value Ratios (LTVs)

The Loan-to-Value Ratio ( LTV) is the loan amount's ratio to the property's value. To be eligible for an FHA 203K loan, the LTV must not exceed 97%. The loan cannot exceed 97% of the property's appraised value.

In addition, there are also restrictions on the type of property that can be purchased or renovated with an FHA 203K loan.

Additional Product Information

The following is more additional product information to keep in mind before applying for an FHA 203K loan that meets your specific needs:

• The property must be a one-to-four unit structure completed at least one year ago.

• You must occupy the property as your primary residence.

• You must have had no foreclosures or bankruptcies in the past three years.

• You can't use the loan to buy or repair a rental property.

• The property must provide basic liveability components, including essential parts like sleeping, cooking, and bathroom areas with running water.

• Accessory dwelling unit ADUs must be a part of your primary 1-unit residence and aren't permitted with 2- to 4-unit residences.

How to Apply for an FHA 203K Loan in Jackson County, Florida

Before applying for an FHA 203K loan, it's essential to understand how this process works to ensure you get the money you need. Generally, FHA 203K loan application can initially seem intimidating, but the following step-by-step guide will help you through the entire process.

Find a Loan Officer

The first step is finding an FHA-approved loan officer familiar with the 203K Loan program. The loan officer will walk you through the application process to help you determine if an FHA 203K loan is right for you and choose the best-fit contractor for your project.

A quick Google search should turn up a few options in your area. Once you've found a loan officer, call them and set up a meeting to discuss your options.

Get Pre-Approved

The next step is to get pre-approved by a lender for the amount you need. This can be done by shopping for a local HUD-approved lender that best suits your needs.

Once you have found a lender, you will fill out a loan application and provide financial documentation such as tax returns, pay stubs, and bank statements.

Inspections

Hire a HUD-approved consultant for inspections and appraisal. The consultant will visit the property, assess the home's condition, and provide a report to the lender.

The lender will then use this report to determine if the property is eligible for a 203K loan and the loan amount you need to complete the work.

Provide Specs and Plans

Specs and plans are required if you want to change the floor plan. A space must be provided on the application to list what will be done with the project budget, including materials, labor, and contractor fees. The lender will guide you on how much is needed in a reserve account based on the planned work scope.

Underwriting

The appraisal will be reviewed and the file submitted for Underwriting. You'll then set up an appointment with your closing agent to review the final steps of the transaction and execute all of the paperwork on closing day. This process can take a few days, but once it's complete, you'll be able to move forward with your loan.

Closing

At closing, your contractor will submit a detailed work plan to the lender for clearance. Once the work plan is authorized, the contractor will begin work and provide periodic progress reports to the lender.

Fixing Up Your Home with an FHA 203K Loan in Jackson County, Florida

If you're torn between your current home and your dream home, consider taking out an FHA 203K loan instead of moving to a new home.

The loan will allow you to perform repairs and renovations on your current property to create your dream home while avoiding the pain of moving.

With an FHA 203K Loan, you can undertake the following projects to breathe a new life in your current home:

• Add a home pool to form a home oasis.

• Add decorative touches to create a modern feel.

• Add square footage to your home to grow with your family.

• Add a new bathroom to evade sharing one with the rest of your family.

5 Desserts in Jackson County, Florida and Where to Find Them

One of Jackson County, Florida's top attractions is the mouth-watering desserts in various restaurants around the county. From ice cream shops to bakeries and even an old-fashioned soda fountain, Jackson County has plenty of spots to satisfy your sweet tooth's cravings any time of day or night.

Here are five can't-miss desserts in Jackson County, Florida, along with the restaurants where you can get them.

Carrot Cake

One of the most popular desserts in Jackson County is carrot cake. This delicious cake is perfect for any occasion and can be found at different bakeries and restaurants throughout the county.

Carrot cake is usually made with a cream cheese frosting, which makes it even more irresistible. If you're looking for a great place to get carrot cake in Jackson County, check out the following spots:

• Sweet Stuff Bakery
• Dairy Queen Grill & Chill
• Beth's Little Cakes
• McDaniels Piggly Wiggly

Key Lime Pie

No visit to the Sunshine State is complete without a slice (or two) of Key Lime Pie. And there's no better place to enjoy this citrusy dessert than Jackson County, home to the best key lime pie in Florida.

They use locally sourced ingredients from around Florida, including the Key limes handpicked from their grove. This dessert will melt in your mouth and make you want more. Here are the five best places to get your Key Lime fix:

• Gazebo Coffee Shoppe & Deli
• Southern Craft Creamery
• Winn-Dixie
• Up The Creek Cafe / Restaurant

Banana Pudding Dessert

If you're a fan of banana pudding, you'll want to try some in one of the great restaurants in Marianna. They make their pudding from scratch using real bananas, wafers, and a secret ingredient they won't reveal. The result is a delicious, creamy pudding perfect for satisfying your sweet tooth any time of day.

There are four different flavors: chocolate, vanilla, pineapple, and peach. Get yours with or without whipped cream on top. Below are the popular spots to grab a banana pudding dessert in Jackson County, Florida:

• Sweet Beans Coffee House
• McDaniels Piggly Wiggly
• Sweet Stuff Bakery
• Baskin-Robbins
• Yo's Sweet Shack

Coconut Cake

If you're looking for a classic Southern dessert, look no further than the coconut cake in Jackson County. This rich and moist cake is covered in fluffy frosting and shredded coconut, making it a true indulgence.

Plus, it's served with a generous scoop of homemade ice cream, making it even more delicious. You can find this sweet treat at:

• Alisha's Custom Cookies
• Dairy Queen Grill & Chill
• Sweet Beans Coffee House
• Walmart Supercenter
• Beth's Little Cakes
• Sugar Rush by Sabre Vassallo

Banana Split Dessert

No trip to Jackson County is complete without indulging in a classic banana split from one of the many affordable restaurants and bakeries. This tasty treat features three scoops of ice cream topped with fresh bananas, whipped cream, chocolate sauce, and a cherry.

Below are some of the popular spots to get a banana split in Jackson County:

• Southern Craft Creamery
• Dairy Queen Grill & Chill
• Johnny Macs Wood Fire Grill
• Tony's Shaved & Italian Ice
• Gazebo Coffee Shoppe & Deli

Bottom Line

FHA loans can be an excellent way to purchase a home, especially if you want to make some significant home improvements but don't have the money to do so upfront.

However, you'll need to understand how these loans work to make an informed decision, enjoy a smooth application process, get your loan, and utilize it properly.

Contact a local FHA loan officer or HUD-approved consultant in Jackson County, Florida, to confirm your eligibility and get professional assistance in applying for a 203K rehabilitation loan.