Limited 203(K) Purchase Transaction Maximum Mortgage Calculation

Limited 203(K) Purchase Transaction Maximum Mortgage Calculation is a 2-page legal document that was released by the U.S. Department of Housing and Urban Development on June 23, 2016 and used nation-wide.

FAQ

Q: What is a Limited 203(K) Purchase Transaction?A: A Limited 203(K) Purchase Transaction is a type of mortgage loan that allows borrowers to finance both the purchase of a home and the cost of repairs or renovations.

Q: What is the maximum mortgage calculation for a Limited 203(K) Purchase Transaction?A: The maximum mortgage calculation for a Limited 203(K) Purchase Transaction is based on the value of the property after the renovations are completed.

Q: How is the maximum mortgage amount determined for a Limited 203(K) Purchase Transaction?A: The maximum mortgage amount is determined by taking the lesser of the sales price plus the cost of repairs or 110% of the after-repair value of the property.

Q: Can the cost of repairs or renovations be financed as part of the mortgage for a Limited 203(K) Purchase Transaction?A: Yes, the cost of repairs or renovations can be financed as part of the mortgage for a Limited 203(K) Purchase Transaction.

Q: Is there a limit to the amount that can be financed for repairs or renovations in a Limited 203(K) Purchase Transaction?A: Yes, there is a limit to the amount that can be financed for repairs or renovations. The total cost of repairs or renovations cannot exceed $35,000.