Another challenge with the existing home inventory on the market is the condition of the property.  Whether it is REOs, foreclosures, short sales, or not, less people are presenting homes for sale in pristine condition.

The FHA 203k loan can help. The 203k can give the buyer the ability to have one loan to purchase and renovate their home at the same time.

Similar to a traditional mortgage with a construction loan added on top, the 203k can be used for the following:

Remodeling bathrooms and kitchens (even built-in appliances)  Replacing a roof, gutters and downspouts Adding a second story, afamily room,another bath, etc. Completing a basement or attic Upgrading plumbing, heating, air conditioning or electrical service Installing new siding, energy efficient windows and doors AND MUCH MORE!

It is important to hire a general contractor that is familiar with the 203k process and requirements.  Advanced Restoration Corporation, a 203k contractor, was recently featured on NBC News4 New York regarding 203k loans, along with Continental Home Loans.

Streamlined 203k Loans
You are purchasing a home that needs minor repairs (repairs under $35,000 qualify for a streamlined loan).  Incorporating the rehab into your mortgage payment allows you to have just one payment. Some highlights include:

No work write-up, no inspection required if repairs are less than $15,000 and no HUD consultant required. Loan amounts up to 110% of the home’s appraised value; renovation amounts up to $35,000.  There is no longer a minimum of $5,000 in repairs for a 203K Streamline. On a 203K Streamline, up to 50% of the rehab amount can be requested immediately following the closing. After closing the work can start. For a 203K Streamline, there is a maximum of 2 draws per contractor. Loan can be used for many improvements, including repair/replacement of:  roofs, plumbing, electrical, flooring, minor remodeling, windows, doors, etc. Available for mortgage refinance transactions including those where the property is owned free and clear.

FHA 203k REHAB Loans

With an FHA 203k loan can I remodel or improve ? 

Yes, Any or all of the following:

Paint Repair a kitchen Add a deck or patio Insulate for greater energy efficiency Replace flooring ie tile, carpet, etc Add a bathroom, replace a bathroom Finish a basement Replace windows (for which you can get a nice energy credits well) Replace Appliances ie stove, furnace, water heater…energy credit  Add central air (again energy credit here) And Much More

For the Florida home buyer the FHA 203K mortgage program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

APPLY NOW AT    http://www.fhamortgagefhaloan.com/

 What Can’t you do with an FHA203k mortgage loan?

Put in a pool or an ice skating rink Add a Theater Room and all the equipment (you could get away with the room) Any other Luxury item, like gold plating the baseboards Putting in a yard

So what do I have to do to get one of these FHA 203k loans?

There are hoops to jump through to qualify .

Owner/occupants only…no flipping or investors (and no you don’t have to be a 1st time homebuyer to qualify) The house must have been completed for at least 1 year , no new construction houses, sorry You will need to have 2 appraisals (one for the as-is value now and one for the projected value once the work is completed) You must identify the repairs and work to be done, and have a written estimate of materials and labor by a licensed contractor and an interior plan of the home. Repairs and addition must have the proper permits, inspections and be done to code And most of all…..you must be able to qualify for the finished product (cost of house + rehab money), so you can’t buy that million dollar fixer upper guys, sorry…..well unless you can afford that million dollar home. You must still have your 3.5% percent down payment for the entire purchase price (home + rehab money) 

Do you have the vision to make the ugly duckling into a swan, then the FHA 203k loan is just what you are looking for. 

Don’t forget if you are a first time homebuyer, you can have the $8000 tax credit working for you too!