Purchase and Rehab Home All in 1 Loan
- Author Kevin Walton
- Published April 22, 2010
- Word count 705
Home Purchase + $35,000 in Rehab Funds…All in 1 Loan
Some homebuyers , homeowners and Realtors may have heard of the FHA 203k Streamline home loan, but many people are not quite sure how it works.
The FHA 203k Streamline home loan is a relatively new loan program that was created to finance minor cosmetic repairs together with an FHA purchase home loan or an FHA refinance home loan.
The FHA 203k Streamline does not require you to be a first time homebuyer and there are no income limitations. The property you are looking to purchase however has to be owner occupied. There is an investment property rehabilitation loan that is available, but it is not an FHA product. If you would like more information you can e-mail or call me directly.
Now I mentioned minor cosmetic repairs. If you are a homebuyer these cosmetic repairs include new painting inside and out, new carpet, appliances, cabinets and windows, roof HVAC unit and much more. It does not include luxury items such as pool or spa repair or anything that includes construction or that may need a permit.
A property that is in need of more major and detailed work could qualify for a Standard FHA 203k home loan which is a different loan than the FHA 203k Streamline home loan.
The Streamline is an abbreviated version of the Standard 203k.
This article covers the benefits of the FHA 203k Streamline loan.
The Streamline has become a popular loan when it comes to purchasing lender owned properties reo's, foreclosures, short sales and for properties that just need a little TLC.
The reason for the popularity is that the seller of the property many times will not put forward any funds to fix the property prior to selling it and you definitely don't want to put any money into a property that's not yours yet, because if the deal falls through, you won't get those funds back.
So the property is sold in "as-is" condition. A homebuyer purchasing an "as-is" property well under market value is enticing. However getting a conventional or FHA loan on the property may not be possible.
Some "as-is" properties do not meet minimum lending standards. For example a home with a missing toilet or broken window creates a health and safety issue, which means a conventional loan or standard FHA loan isn't possible. The lender will not lend on the property in such a condition, they may have let some of these little things go a few years ago but not anymore.
Some lender owned properties are missing the HVAC unit or are missing sinks, doors, electrical outlet plates and the list goes on and on. These types of "as-is" homes can drive away homebuyers as well as lending institutions. But the FHA 203k Streamline loan can solve health and safety issues and other problems, because these cosmetic repairs can be made after you buy the home. So obtaining a loan, and receiving up to $35,000 to fix minor repair funds, all in 1 loan with a 3.5 equity to qualify. Options to obtain repair and home improvement funds are very limited in our current marketplace. The FHA 203k Streamline loan gives you the purchase loan and cosmetic repair funds again all in 1 loan.
Dare to dream and go ahead and take a look at some properties that have been sitting on the market for awhile, or some lender owned properties, and paint a picture in your mind as to what the home would look like with new carpet, new paint, new appliances, and new cabinets and know that there is a loan out there to cover the purchase loan + up to $35,000 for cosmetic repairs.
It is also worth mentioning there are some ins and outs on how to properly structure these loans, but it you would like more information on the FHA 203k Streamline loan you can download a more in depth free guide by pasting this URL http://www.affordableloansbykevin.com/Rehab 20 Home 20 Loan 20 Questionairre.html. into your browser. You can also send me an e-mail or give me a call I would be more than happy to help answer your questions.
Regards,
Kevin Walton
Certified Loan Advisor
Catalyst Lending Inc.
streamlineman@earthlink.net
805- 276-1942
Kevin Walton is a Certified Mortgage Advisor who has originated and funded over 2500 home loans in Southern California.
I only originate loans in California. I specialize in educating and protecting my clients and only recommend loans that I would give my own family members.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Effective Strategies for Paying Off Your Mortgage Faster
- How Does Equity Release Work?
- Florida First Time Homebuyer: The Indispensable Guide of Tips, Programs, and Resources
- How to Become Debit Free?
- Sellers Concession the Closing Cost Option
- Financing Short Term rentals with DSCR loans
- Why move to Roseville CA
- Simple Interest Mortgage Advantage
- Are Low Doc Commercial Loans available in Australia
- How to Obtain a Rural Agriculture Loan Quickly and Easily
- What is a Caveat Loan?
- Tips for improving your Credit Score before getting a Home Loan
- 3 Things To Look out for With An Equity Release Mortgage
- Manage your Debts by Refinancing your Current Home Loan
- How to Get a Home Loan with Unusual Employment or Income?
- 20 Effective Debt Consolidation Loans Tips with Bad Credit
- Tips for Choosing a Non Conforming Lender
- Why is a Good Credit Rating Important in Australia?
- Most Common Ways That People Fall Into Personal Bankruptcy
- How to Choose a Consumer Credit Counseling Agency?
- Consolidate Your Debts and Take Control of Your Finances
- How to get a Home Loan due to a Bad Credit Report
- Debt Consolidation Home Loans are a Solution to Multiple Debt Problems
- Facts You Should Know About Low Doc Home Loans in Australia
- No Doc Loans from Private Lenders
- Home Loans to Consolidate Debt for People with Bad Credit
- How Can I Get a Mortgage If I Have a Bad Credit History?
- Guidelines to Fix Bad Credit Effectively Through Dispute
- Dealing with Debt – What to know about Debt Consolidation
- Investing In Yourself Before Investing in the Market