You Can Buy AND Renovate a Home with One Loan!
Buy AND renovate a home with a 203k mortgage! Because there is much more involved with this loan product than simply “getting a mortgage”; be prepared to be patient. There are a couple of different 203k products: 203k 203k Streamline (aka: Streamline 203k Limited Repair Program) The Streamlined 203(k) loan is the easiest and less costly renovation loan of the two. 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 the 203k refi program. Nonprofit organizations can also qualify for this loan program. *It is not available to investors who will not be living in the property.*...
Read MorePainting? Pay Attention to the Type of Paint You’re Using:
Don’t pass up buying a home because it requires cosmetic repairs! FHA offers the 203k mortgage program that provides funds for repairs and/or upgrades. Not to be confused with FHA’s full 203k program, a Streamlined 203k loan eliminates much of the paperwork and simplifies the process to obtain rehab funds. The primary function of the streamline 203k is to aid with those cosmetic or minor repairs One “repair” that is allowed is paint. What kind of paint is best for each room? There’s a basic rule of thumb to follow when choosing paint sheens: The higher the sheen, the higher the shine — and the higher the shine, the more durable it will be. Flat paint has no shine; high-gloss is all shine. In between are eggshell, satin, and semi-gloss, each...
Read More203K & 203K Streamline Mortgage…What’s the Difference?
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...
Read MoreCan 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...
Read MoreFixer 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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