12-9-2015, FHA has raised its loan limits from $517,500 to $540,500 in King County which covers cities like Seattle, Bellevue, Issaquah, Renton, Kirkland and Bothell. Current FHA loan rates for a 30 year fixed mortgage hover around 4% depending on your credit score and points paid. FHA loans cover from a single family home, condominium, townhome, duplex, tri-plex, and a four plex for owner occupant buyers.
In addition, buyers may also choose a rehab or construction loan under the FHA 203k rehab loan. With an FHA 203k rehab loan, buyers can purchase a home, submit repair and improvement items such as a kitchen remodel, new roof, new carpets, etc, up to the FHA loan limits as long as the home will appraise at the improved value. The buyer then closes on the home and completes the improvements after closing. Since most people spend all their money on a down payment (3.5% for FHA loans), buyer typically don't have $30,000 extra to improve their home after closing. Therefore, an FHA 203k loan can be a great conduit to build instant equity and enjoy your new home! Moreover, 4% amortized over 30 years is much better than putting your improvements on a credit card!
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