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FHA 203K rehab loan

  

FHA 203k loan

What is an FHA 203K  Streamline Rehab Mortgage?

If you have been passing up homes that need cosmetic updating or repairs because you just don't have the cash funds to fix them up, then Great Lakes Mortgage Funding has the program for you.

The FHA 203k Streamline Mortgage is offered to consumers who are looking to purchase or refinance a home, while adding in the cost of renovations into a single low interest rate mortgage.   With an FHA 203k Streamline Mortgage, you can roll in up to $35,000 of estimated renovations and repairs into one mortgage, giving you the funds to do some of the following:

What improvements are eligible under the new Streamlined (k) program?

The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.  The Streamlined (k) program includes the discretionary improvements and/or repairs shown below: 

·    Repair/Replacement of roofs, gutters and downspouts

·    Repair/Replacement/upgrade of existing HVAC systems

·    Repair/Replacement/upgrade of plumbing and electrical systems

·    Repair/Replacement of flooring 

·    Minor remodeling, such as kitchens, which does not involve structural repairs

·    Painting, both exterior and interior

·    Weatherization, including storm windows and doors, insulation, weather stripping, etc.

·    Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens

·    Accessibility improvements for persons with disabilities

·    Lead-based paint stabilization or abatement of lead-based paint hazards 

·    Repair/replace/add exterior decks, patios, porches

·    Basement finishing and remodeling, which does not involve structural repairs

·    Basement waterproofing

·    Window and door replacements and exterior wall re-siding

·    Septic system and/or well repair or replacement

What items remain ineligible for the Streamlined (k) program?

Properties that require the following work items are not eligible for financing under the Streamlined (k):

·    Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;

·    New construction (including room additions);

·    Repair of structural damage;

·    Repairs requiring detailed drawings or architectural exhibits;

·    Landscaping or similar site amenity improvements;

·    Any repair or improvement requiring a work schedule longer than six (6) months; or

·    Rehabilitation activities that require more than two (2) payments per specialized contractor. 

Maximum mortgage amount must fit within FHA Max Mortgage Guidelines for your county!

Here is an example of how it works:

You find a home that has the exact location and floor plan you are looking for, yet it needs a lot of renovation in order to bring it up to code or to your standards, and you don't have the cash to make the improvements .  Here is where you can use the 203K  loan.  You make an offer on the home based on obtaining 203K Financing, and once your seller accepts  your offer, you then immediately get estimates of all renovations from a licensed contractor.   The appraiser will then give 2 value estimates of the home, one "as is" before renovations and one "as complete" after all renovations would be completed.   As long as your total mortgage amount does not exceed 110% of the "as complete" value, your new home would qualify for an FHA 203k Streamline Mortgage...

At closing, your contractor will get 1/2 of their funds and the other 1/2 is disbursed to them once all repairs are complete and you and the appraiser sign off on it, but usually no earlier than 30 days from closing. 

The FHA 203K Streamline Mortgage offers a low down payment as well, which is 3.5% of the total combined Sales Price and Renovation amount, and 100% of the down payment can be gifted to you.   The program also allows buyers or current homeowners with less than perfect credit to take advantage of this incredible program.

I am a 203k expert and have closed hundreds of these loans throughout my career, and I can usually close them within 30 days of your purchase agreement acceptance date.    Don't hesitate, call me or one of my staff members today and get started on turning a fixer upper into your Dream Home!  Just think about what you could do with $35,000 to fix up your home.  The possibilities are endless!

 

 

 

 

Derek Neher NMLS License # 135746, Executive Vice President NMLS #135746
Towne Mortgage Company dba Great Lakes Mortgage Funding
49857 Grand River Ave. Ste A, Wixom, MI  48393
Direct:  (734) 422-5200 Ext. 7681
Cell:  (810) 533-2342
Fax:  (734) 943-6213
derek@glmf.com
Copyright © 2017 Great Lakes Mortgage Funding, Inc.
(a division of Towne Mortgage Co.)
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