Amerifirst blog

Explore our blog for insights on buying, financing, remodeling, and taking care of your home.

Back to all posts

How Long Do I Have to Live in a House with FHA 203k?

It's probably the most-used renovation loan in the housing market: FHA 203k. This mortgage loan option helps home buyers purchase and fix up a home with one mortgage, one interest rate, one payment. The caveat to this mortgage is that the house must be your actual home, not an investment home or a second home. 


 

This requirement of the FHA 203k leads people to ask the question "How long do I have to live in a house with FHA 203k?" You ask...so we answer. See the short video below for your answer.

 

 

See the embedded video here - How Long Do I Have to Live in a House with FHA 203k? 60 Second Mortgage Tip

Script: Hi I’m Dan Moyle with AmeriFirst Home Mortgage and THIS… is your “60 Second Mortgage Tip.”

How long do I have to live in a house with FHA 203k? It’s a good question. The answer is: there isn’t really a minimum time. The real concern here is that the buyer is using the FHA 203k on their primary residence. You must be the owner AND occupant of the home – so it’s not an investment mortgage. This renovation loan is meant to help home buyers buy and fix up their dream home. It’s not really meant for buying house after house to fix up and sell. If that’s your plan, you may want to look into a mortgage like HomeStyle Renovation. That has the set up for investors. One quick note though – if you’re interested in buying multi-unit homes and renting out the other units, like a duplex, then the FHA 203k loan could work. Ask your mortgage consultant.

Thanks for watching. For more video tips, subscribe to our channel. If you like what you see, hit the thumbs up below for us! Again I’m Dan Moyle with AmeriFirst Home Mortgage. This has been your “60 Second Mortgage Tip.”

Ultimate Guide to Renovation Loans

Related Posts

Home Maintenance Tips for Winter

Sure, spring cleaning sounds great.  However, in reality, tackling a long home maintenance checklist all at once can be overwhelming. Rather than letting it all add up, what if you tackled home maintenance a little each season? Here are some ideas for taking care of your home during the winter months.

Tips for Paying Off Your Mortgage Faster

There are several ways to pay off your mortgage faster and save on interest payments. Even better, not all methods require spending a lot of extra money! Take a look at the list below: Make extra principal payments.  You can pay extra money toward your mortgage balance each month or make a larger, lump sum payment on your principal each year. This reduces the amount due on the mortgage as well as reducing the amount of interest that will accrue. Extra money can also be added to the principal payment from bonuses, gifts, savings and extra earnings. Just remember to make a note on the check for the money to go towards the principal! Make one extra mortgage payment per year. One of the easiest ways to make an extra payment each year is to pay half your mortgage payment every other week instead of paying the full amount once a month, otherwise known as “bi-weekly payments.” With these payments, an extra payment is made so that the total number of payments that one makes adds up to 13 payments in a year rather than the 12 that would have been made with monthly payments. This adds up to significant interest savings over the duration of a mortgage. You also want to make sure that if your lender accepts this kind of payment they will not charge you a prepayment penalty. Also verify that the bi-weekly payments are being applied to the principal amount and not the interest. Otherwise, you won't notice the savings. Reduce your balance with a lump-sum payment. Have you inherited money, earned a bonus or commission, or sold a large item? You could apply that amount to your mortgage’s principal balance. Another option is any time you have a month where you have that third paycheck, apply that to the principal on your mortgage. This will happen twice a year, adding an extra principal payment to your mortgage loan. While paying down a large debt is nice, it's not a requirement. Consider making sure you have enough to work toward other financial goals, such as an emergency fund, before paying more on your mortgage. However, there are many options you can explore that best fit your budget. You can learn more about buying your first home with our Get Mortgage Ready Guide below.

Mortgage Interest Rates Up - Is It Still a Good Time to Buy?

You've seen the headlines and heard the chatter - mortgage interest rates have gone up. How long will this last? Will this be a return to renting for people who were thinking of buying a home? Or is it just a small adjustment in the overall scheme of things? 

icon_footer_phone-01

Call us

800.466.5626

icon_footer_laptop-01

Get started

Apply online today