This may be what you need…
You found the perfect home. The outside of the home looks great, but when you go inside the home, you discover it is less than desirable. You wish you could purchase the home, but you don’t have the money to invest to make repairs the way you would like.
To find out how to make your dream a reality…read on. Your Dreams can become Reality!

What is a 203 K FHA insured Mortgage?
Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

The Section 203(k) loan program is HUD’s primary program for the rehabilitation and repair of single family properties. These loans are provided through HUD-approved mortgage lenders nationwide and insured by FHA, which is part of HUD. These loans are beneficial for families since the loan down payment can be as little as 3.5% given the property must be used as a principal residence. This program allows you to roll the rehab and repair cost directly into your mortgage and turn your “fixer upper” into a DREAM HOME.

Purpose of the 203K

Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money.

Streamline 203K – What is a Streamline?

The Streamline (k) program is a modification of the 203(k) program to facilitate purchase transactions in which the property needs minor rehabilitation work, as identified in a pre-purchase home inspection or the FHA appraisal. FHA’s Streamline 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this program, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector, FHA appraiser, or contractor. Both the Standard 203(k) and the Streamline (k) programs can be used in conjunction with refinancing of an existing home.

Type of Assistance you can get with a 203K:

Section 203(k) insures mortgages covering the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less. This formula allows flexiblity for propertities otherwise would not qualify.
Who is eligible for a 203K?

All persons who can make the monthly mortgage payments are eligible to apply. Cooperative units are not eligible; individual condominium units may be insured if they are in projects that have been approved by FHA or the Department of Veterans Affairs, or meet certain Fannie Mae guidelines.
What extent of repair qualify under the 203K program?

The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one- to four- unit structure. The types of improvements that borrowers may make using Section 203(k) financing include:

>structural alterations and reconstruction
>modernization and improvements to the home’s function
>elimination of health and safety hazards
>changes that improve appearance and eliminate obsolescence
>reconditioning or replacing plumbing; installing a well and/or septic system
>adding or replacing roofing, gutters, and downspouts
>adding or replacing floors and/or floor treatments
>major landscape work and site improvements
>enhancing accessibility for a disabled person
>making energy conservation improvements

What is your next step:

We are ready to assist you in adding the best value to your new home. We are lending experts who specialize in the FHA 203 (k) loan process. Together we have an extremely knowledgeable team of experts who know all of the governmental requirements of the 203 (k) process and we will assist you every step of the way to make sure that you will receive all of the monies you need to complete the job correctly and on time.

Let us know if you would like to see if you qualify:  CLICK HERE