203K – Is it for Me?

“Fixer-Upper” What does that phrase really mean? By definition: Noun 1. fixer-upper – a house or other dwelling in need of repair (usually offered for sale at a low price) Some people shy away from these types of listings because they do not have funds available up front to complete repairs and renovations. Sometimes, repairs and renovations are required for the house to even be habitable. If you have found a fixer-upper that you are interested in purchasing, but don’t have the cash to remodel it; consider the 203(k) mortgage program. What Exactly Is It? The Federal Housing Administration’s rehab loan product, the FHA 203(k) loan, was designed for individuals who want to rehabilitate or repair a damaged home so they can live in it as their...

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Can I Refinance & Renovate My Home with a 203K Loan?

Can I Refinance & Renovate My Home with a 203K Loan?

Can I Refinance and Renovate My Home with a 203K Loan? Yes you can! This type of loan is sometimes called a “rehab loan”. If you are looking to make significant improvements to your home, this may be the way to go. A homeowner can consolidate their existing mortgage loan, and the cost of the home renovation project, into one new loan up to a percentage of the “after-completed” value of the house. The “after-completed” value of the house is the anticipated value of the house that takes into consideration all of the improvements that will be made to the house through an FHA 203k refinance loan. By using the “after-completed” value of the house homeowners will be eligible for a larger renovation budget than offered...

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A Run Down Of HUD’s 203k Streamline Mortgage

The 203k streamline mortgage is not the same as the 203k mortgage. The FHA 203(K) Streamline obtained its name because it simplifies the loan process by not requiring the extra cost and details found in its counterpart, the FHA 203(K) loan. Eligible Borrowers This loan program is available only to people who plan to use the properties for which they are getting the loans as their primary residences. If a current homeowner needs to rehab his existing home, he can use this program. Nonprofit organizations can also qualify for this loan program. It is not available to investors who will not be living in the property. Eligible Properties The program is focused on single-family, owner-occupied properties, but it is not limited to those. Homeowners can also use this...

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Making A Home Handicap Accessible with a 203K Streamline Mortgage

Making A Home Handicap Accessible with a 203K Streamline Mortgage

Another allowable improvement for a 203k Streamline Mortgage is handicap accessibility improvements. If you find yourself in the market for a house and someone in your household can no longer get around easily due to a walker or wheelchair, there are some ways that you can change things to make a house more comfortable and safe. There are several areas that need consideration, and they are stairs, hallways and doorways, and bathrooms.  Keep in mind, these improvements must be done by a licensed/insured contractor to be eligible for the 203k Streamline Mortgage.   Hallways and Doorways These areas need to be wide enough that you can get through them in a wheelchair without difficulty. Many hallways may be wide enough, but are cluttered with pieces of...

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Fixer Upper? Should I Even Look at It?

Fixer Upper? Should I Even Look at It?

You’ve been scouring the real estate books and classifieds. You come across a home that seems perfect…until you see the words… FIXER UPPER. Most would skip right over the listing due to those two little words. Did you know you can finance a “fixer upper” to include most repairs? If you’ve toured homes, you know that houses come in all kinds of condition. Some are move-in ready. They will typically be listed at a higher price. Others may need some work. These houses tend to be priced below the market, reflecting the need for repairs and improvements. For buyers who have the skills and willingness to undertake these projects it presents an opportunity to save money. But there can be one significant obstacle. Can’t pass the...

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What is a 203k Mortgage and is it for Me?

You’ve looked at  a home that seems to be in the perfect location for you, great schools for the kids, and the price is right. But… it seems to need a little (or a lot) of work. A 203k mortgage may be exactly what you need! You will want to have the home inspected. A home inspector will help you evaluate the condition of the home, including the roof. A 203k loan is an FHA product. Standard FHA loans have strict guidelines about the condition of the home you’re buying. The home has to get an inspector’s approval for livability and the health and safety of the occupants, including things such as working windows, unbroken stairs, working appliances and a working heating system.  If the home you want to buy doesn’t meet FHA standards and you still...

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