FHA 203(k) Streamline Mortgage - Why haven't you considered it?
The FHA 203(k) Streamlined Mortgage could be the best loan you aren't considering.
FHA's Streamlined 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 product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.
Choice of Agent and Loan Officer is Very Important!
Not every agent or Loan officer understands the FHA 203(k) Streamlined Mortgage program, and many are not able to process it in a timely manner acceptable to many sellers. As a matter of fact many agents and loan officers do not even mention this program to their buyers. We has done many of these and has found a Loan Officer and Mortgage Company that fully understands and embraces the program and are able to process it locally and efficiently.
Advantages:
- Opens doors to homes buyers may have been avoiding due to condition.
- Lets buyers buy properties only investors are making money on.
- Buyers could end up with a home in like new condition.
- Buyers may end up with instant equity due to repairs being made.
- No minimum dollar amount and up to $35,000 for improvements.
Eligible Repairs:
- 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
Strategy:
- Pick an agent with experience with the FHA 203(k) Streamline.
- Pick an Loan Officer with experience with the FHA 203(k) Streamline that processes it locally in less than 45 days.
- Use one contractor for best results and coordination.
- Get pre-approved for your mortgage and pick a price range.
- Look at properties up to $35,000 below you chosen price range that need work.
- Get an estimate of the cost of repairs.
- Determine fixed up value.
- Make you offer and get ready to enjoy your upgraded like new home.