Preferred Mortgage Corp, Puerto Rico, 203k mortgage.#203k #mortgage


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203k Loan Appraisal Guidelines, 203k mortgage.#203k #mortgage


FHA 203k Appraisal Guidelines

An appraisal conducted by a licensed and approved FHA appraiser is needed for underwriting a 203k loan. All residential home loan programs including VA, FHA and conventional (Fannie Mae, Freddie Mac) require the performance of comprehensive appraisal report. The type of appraisal required for the financing of rehab property is specified under the 203(K) appraisal requirements and guidelines.

The primary objective of an appraisal report is to establish the value of a subject property based on its existing condition and local market conditions. A lender evaluates other factors only after the suitable property value has been determined. The loan amount allowed by the 203(K) rehab loan program is determined based on the market value established by the FHA approved appraiser.

Differences between a 203K Appraisal and a Conventional Mortgage Appraisal

For most common purposes involving residential financing, the lender appraisal guidelines only require the As Is value. In such reports, the appraiser estimates the home value based on its prevailing condition. The 203K appraisal is different as it involves the calculation of the After Repair value.

In addition to the purchase price, the cost of the rehab and repair work can also be financed with a 203k loan. The proposed repair work, in most cases, increases the property s market value. A 203k lender seeks the after-repair value from an appraisal report submitted to them by an approved FHA appraiser. The ARV helps the lender determine the maximum loan amount a property can support based on its value.

The specific FHA appraisal guidelines on 203(K) loans differ based on the type of transaction involved. For purchase transactions, the lender may choose to establish the sales contract price as the As is Value . Value is determined based on the contract amount only in cases where the lender estimated value is also similar to the agreed amount.

If purchase price based on the contract is higher than the AS IS value determined by the appraisal, the lender may require the buyer renegotiate the contact price to match this amount. Otherwise, the borrower may have to secure these funds from other sources.

For a refinance transaction under 203K guidelines, the FHA appraisal requirements are slightly different. As there is no contract involved, the present value of such properties is determined using either the outstanding loan amount or the as is appraisal value. When both values are available, the lesser one is chose for setting the 203k loan appraisal value. In situations where the outstanding amount exceeds the allowable LTV amount, the difference can be made up through cash at the closing.

The 203k appraisal requirements are accommodative of many rehab loan scenarios that fall between the Streamline and Standard programs. Both the as is and after repair values can be indicated in a single appraisal report. The proposed improvements and renovation work is considered when arriving at the after improvement value. The final call regarding a single or double appraisal is taken by a 203(K) lender underwriting the loan.

Appraisal for HUD 203(K) Eligible Properties

203K rehab loan program is one of the most preferred options utilized by buyers of 203(K) eligible HUD owned homes. Every hud-listing has an entry indicating the eligibility of the subject property according to 203k provisions.

A HUD property can be purchased and renovated using a 203k loan. An appraisal report is generally not required by the lender to determine the as is value. When an appraisal is needed, it can be requested from the nearest field office. This usually saves about $300 for buyers of HUD homes with a FHA 203k loan.

Unlike traditional and conventional appraisal reports, a 203k appraisal involves contractor bids, work write-ups, proposed plans, specifications and other related matters. All the supporting documents must be presented in the lender prescribed format as a part of the final appraisal package.

In addition to single-family and multi-family residential properties, 203k financing can be used to renovate and rehabilitate mixed-use properties and condos. A mixed-use property appraisal involves the separate assessment of both the residential and commercial portions. Due to this, the appraisers might charge a bit higher.

The lending guidelines allow a loan amount 10% greater than the 203k appraisal value determined through the after repair method.

203k mortgage


Seattle Mortgage and Home Loans – HARP, USDA, FHA, 203k and Jumbo – Dan Keller,


203k mortgage

203k mortgage

The Biggest Mistake First Time Home Buyers Make In Seattle

Episode #46: I explain the BIGGEST mistake first time home buyers make in the Seattle market and how it cost $83,981 over 10-years

203k mortgage

Understanding Trump s Tax Plan and Mortgage Interest Deductions

Episode #45: It s tough to believe what the media is saying related to Trumps proposed Tax Plan and what it means to housing, so I explain exactly what it means

203k mortgage

Everett Mortgage Broker Explains Zero Down Home Loan Options in Washington

Episode #44 Everett Mortgage Broker explains the Top 3 Zero Down Loan Programs for 2017 and an update on the market

Recent Mortgage News Updates

203k mortgage

How To Pay Your Closing Cost When Buying A Home

Closing costs are a variety of fees associated with buying a home! In this article and video, you ll learn what are closings costs and how to pay your closing costs when buying a home in Seattle..

203k mortgage

The Top 4 Factors That Determine Your Mortgage Rate Quote

Consumers are misinformed when it comes to mortgage interest rate quotes. Today, I give you a behind the scenes look into the mortgage industry and what determines your mortgage rate

203k mortgage

How A Home Refinance Should Look 2 Step Process

I answer the top question I get on Yelp How do I refinance my mortgage? I share my 2-step mortgage planning process that is designed to save you and make you money over time

Real Estate Agents | Join My Next Lunch Learn

203k mortgage

Seattle Real Estate Radio | podcast Youtube show

203k mortgage

Listen Watch | This Weeks Episode

Curious about what goes into staging a home, and why it could be a life saver before you put your house on the market? David Robertson of David Robertson Design is here to shed some light on the topic.

David has been working in Seattle for 14 years in Home Staging and Interior Design. He opened his own company David Robertson Design based on the idea that if he specializes in building a company around his passion for Modern and Mid Century Modern Design/Architecture that he could create a niche in the Seattle Market that was not being meet. 10 years later, he has grown the company from of 1 Employee and 1 Sofa to 9 employees and 5000 sqft Warehouse that can stage up to 50 houses at a time. He has the most talented design team assembled in Seattle that are the magic behind his company.

Tune in to hear all your questions answered on what is important to know about design and home staging, led by our ever wonderful hosts Dan Keller and Christian Nossum.

To check out David Robertson Design, visit here http://www.davidrobertsondesign.com/

To check out Co-host Christian Nossum’s website, visit here

What Other Are Saying | About the Dan Keller Team

The Dan Keller Mortgage Team gives massive value to their clients in each transaction. They not only provide great rates and fees, but also offer unparalleled customer service! Oh, and did I mention that they can close a loan effortlessly in under 21 days?

Zach M. September 11, 2015

When it comes to buying a home, small differences between banks can amount to thousands of dollars. Dan locked us into an excellent rate and helped us secure a loan with payments well below our expectations. He secured us an amazing mortgage and made the entire process simple and effortless on our part. He and

Bert B. September 11, 2015

Dan Keller and his team are completely amazing. I have a bit of experience in mortgage lending (okay, 30 years), and would highly encourage anyone considering a real estate loan (Agents, are you listening?) to use Dan’s team for their next transaction. My daughter her family were in a short-sale escrow to purchase a

Deborah K. September 11, 2015

As a real estate attorney, I can attest to the first-class quality of Dan’s service and products. Dan has done a spectacular job for my clients, distinguishing himself by working hard, getting them in the right loans, then ensuring the transactions close smoothly. I cannot recommend Dan highly enough.

Ron M. September 11, 2015

I’m an educator and a 30+ year veteran of the mortgage lending industry. I’ve known Dan for several years now. This year, Dan was put in a position of having to make an ethical choice. He chose to be honest. His choice had an effect on me professionally, and I don’t think he realized it

Jillayne S. September 11, 2015

Can’t say enough about Dan and his team. I am a real estate broker in Northwest Washington and encourage all of the buyers we are working with to contact Dan and use him if they are financing their home. I could go on and on about how he has saved the day on different deals

Ed F. September 11, 2015

My wife and I are first time home buyers who were slightly anxious about the unknowns in the process of getting a loan. A friend referred us to Dan Keller and his group, saying they had rates comparable to big banks but were much more personable. Our first thought was that paying a bit more

Jonathan W. September 11, 2015

After an awful experience with Wells Fargo, Dan and his team swept in and saved the day. We found the perfect house and were not ready to let it go. We thought it might be a long shot to get our loan through a second process in only 3 weeks, but Dan made it happen

Alanna B. September 11, 2015

I have been recommending all of my Seattle Real Estate clients to Dan Keller for years when they need an FHA loan, conventional mortgage, or refinance. As a Seattle real estate agent myself, I am often “courted” by mortgage brokers that want me to work with them. None are as good as Dan. When he

Christian N. September 11, 2015

Dan has been an excellent business partner, I definitely recommend his mortgage services!

Bob W. September 11, 2015

Honestly after reading these reviews I was skeptical about them being fake. Possibly Dan’s friends or family trying to hype him up. People do not get this good of reviews. I was wrong; after working with Dan I can honestly say he was great. We had a near impossible situation that most advisors/brokers would have


203k mortgage #mortgage #rate #charts


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Illinois Residential Mortgage Licensee NMLS License #2611
3940 N. Ravenswood Chicago, IL 60613

NMLS Consumer Access
Texas Consumers: How to File a Complaint
Consumers wishing to file a complaint against a company regarding the origination and/or servicing of your mortgage loan or a complaint against a residential mortgage loan originator concerning residential mortgage loans on real estate located in Texas should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov.

Copyright 2000-2016 Guaranteed Rate. All rights reserved.


203K Loan Requirements and Guidelines – Understand – Apply #land #mortgage #calculator


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203k Loan Requirements for the Renovation and Rehabilitation of Residential Properties

Are you looking to purchase a residential home that requires renovation work? If so, FHA 203(K) loan program may be an appropriate financing option for you.

Generally, for those who wish to buy a home that needs fixing up, the normal course of action would be to buy the property with financing through an unconventional lender such as a private hard money lender. Often times, the interest rates and fees charged on such loans are extremely high. The duration of such loans is also quite short, usually between 6 months to an year. These restrictions have generally discouraged new home buyers from purchasing residential properties in need of repairs.

If the home you wish to buy is need of minor, or major repairs, you may be able to handle the purchase transaction and also secure the necessary funds through a single loan using the 203(K) FHA rehab loan. In many situations where traditional or conventional financing is rare or non-existent for renovating a primary residence, applying through an approved FHA lender for 203(K) financing can be the best course of action.

FHA (Federal Housing Administration) is the HUD’s (Department of Housing and Urban Development) division that administers various single-family mortgage insurance programs through approved lenders to aid both the owners and new buyers of residential properties. FHA does not directly engage in the underwriting, processing or funding of the residential loans it insures. FHA approved lenders handle all aspects, from origination to closing to funding .

The section 203(K) of the National Housing Act was amended in 1978 by the Section 10(c) (1) of the Housing and Community Development Amendments. The main objective of the revision was to enable HUD to take measures that would allow for the promotion, restoration, rehabilitation and preservation of the existing housing stock in the country.

FHA’s 203(K) loan program allows new home buyers and existing homeowners to finance the cost of repairs and improvements that need to be performed on their single-family homes. FHA program requires the property to be a primary residence of the borrower. In addition to financing individuals and families, the 203(K) rehab program also provides financing to organizations engaged in the renovation of properties to revitalize neighborhoods.

Many FHA approved lenders have successfully partnered with various state, local housing agencies and non-profit companies to provide financing under the 203(K) program for initiatives that involve rehabilitation of damaged properties in challenging localities. Financial resources from other program such as HUD’s HOME, HOPE and housing grants were used in conjunction with the 203k rehab loan program to assist borrowers by various housing agencies, at all levels.

The expertise of the housing agencies has also helped a lot of 203k lenders in effectively dealing with rehabilitation application processing. A number of loan programs that adhere and complement the 203(K) guidelines have been introduced by local housing agencies to help homebuyers and homeowners in the areas they service.

Lenders are also obligated under the community reinvestment act to demonstrate their commitment to lend in lower income communities. Participating in 203(K) loan programs has been one of their preferred ways to do so in the recent years.

Compared to conventional loan programs, the process and the requirements involved in securing 203k financing can be quite difficult. To secure a 203(K) insured loan for rehabbing or renovating a single-family home, the best choice would be to approach an experienced FHA approved lender that lends in your area. Before even approaching a 203k lender, a borrower can visit their local HUD homeownership center for preliminary assistance and guidance.

FHA 203k Loan Overview

An FHA 203k loan is a type of FHA-insured home loan that allows homebuyers and homeowners to finance the cost of repair work to improve/renovate/rehabilitate their primary residence into their mortgage. Most of the qualifying criteria are similar to the standard FHA loans that involve rehab financing. The procedures related to the renovation administration and fund disbursement are handled according to the 203k loan requirements stipulated by HUD.

A borrower can use the 203k loan program for quickly and efficiently accessing the cash necessary to pay for repairs or improvements to their primary dwelling. The work write-up and estimates based on the reports from 203k consultant. contractor and appraiser assist a 203k mortgage lender in underwriting the loan.

Energy efficient improvements, structural changes and appliances are just some of the wide range of repairs and improvements eligible for 203k financing .

Types of 203k Loan Programs

There are two types of rehab loan programs that fall under FHA 203k. The specific and appropriate loan depends on the type of repair work and the total cost associated with them. Both the loan programs can be used for either purchase or refinance transactions.

Standard (K) Program

The 203k standard rehab mortgage is used for financing properties in need of extensive repairs. Major additions and structural changes fall under this loan type.

A standard 203k loan program allows a loan amount that is 110% of the after improvement value determined by the appraisal. A 203k consultant is required to perform a thorough home inspection in order to do the complete work write-up. A minimum of $5,000 must be borrowed for the sake of repairs. The maximum loan amount depends on the proposed appraisal value. All other qualifying guidelines are pretty much similar to other FHA loans.

Streamline (K) Program

The FHA 203k streamline loan is primarily used for repairs that cost less than $35,000. Most cosmetic improvements and common repairs that do not involve structure, addition or conversion can be financed with a streamline loan. There is requirement for a minimum loan amount. The entire 203k streamline guidelines are designed to make the approval process flexible and easy.

A 203k standard program is particularly suited for projects that need major reconstruction and renovation; while the 203k streamline is appropriate for repairs that fall below $35,000. Homeowners can buy new appliances and also finance all other common repair works with the 203k program.


203K Loan Requirements and Guidelines – Understand – Apply #home #loan #rate


#203k mortgage

#

203k Loan Requirements for the Renovation and Rehabilitation of Residential Properties

Are you looking to purchase a residential home that requires renovation work? If so, FHA 203(K) loan program may be an appropriate financing option for you.

Generally, for those who wish to buy a home that needs fixing up, the normal course of action would be to buy the property with financing through an unconventional lender such as a private hard money lender. Often times, the interest rates and fees charged on such loans are extremely high. The duration of such loans is also quite short, usually between 6 months to an year. These restrictions have generally discouraged new home buyers from purchasing residential properties in need of repairs.

If the home you wish to buy is need of minor, or major repairs, you may be able to handle the purchase transaction and also secure the necessary funds through a single loan using the 203(K) FHA rehab loan. In many situations where traditional or conventional financing is rare or non-existent for renovating a primary residence, applying through an approved FHA lender for 203(K) financing can be the best course of action.

FHA (Federal Housing Administration) is the HUD’s (Department of Housing and Urban Development) division that administers various single-family mortgage insurance programs through approved lenders to aid both the owners and new buyers of residential properties. FHA does not directly engage in the underwriting, processing or funding of the residential loans it insures. FHA approved lenders handle all aspects, from origination to closing to funding .

The section 203(K) of the National Housing Act was amended in 1978 by the Section 10(c) (1) of the Housing and Community Development Amendments. The main objective of the revision was to enable HUD to take measures that would allow for the promotion, restoration, rehabilitation and preservation of the existing housing stock in the country.

FHA’s 203(K) loan program allows new home buyers and existing homeowners to finance the cost of repairs and improvements that need to be performed on their single-family homes. FHA program requires the property to be a primary residence of the borrower. In addition to financing individuals and families, the 203(K) rehab program also provides financing to organizations engaged in the renovation of properties to revitalize neighborhoods.

Many FHA approved lenders have successfully partnered with various state, local housing agencies and non-profit companies to provide financing under the 203(K) program for initiatives that involve rehabilitation of damaged properties in challenging localities. Financial resources from other program such as HUD’s HOME, HOPE and housing grants were used in conjunction with the 203k rehab loan program to assist borrowers by various housing agencies, at all levels.

The expertise of the housing agencies has also helped a lot of 203k lenders in effectively dealing with rehabilitation application processing. A number of loan programs that adhere and complement the 203(K) guidelines have been introduced by local housing agencies to help homebuyers and homeowners in the areas they service.

Lenders are also obligated under the community reinvestment act to demonstrate their commitment to lend in lower income communities. Participating in 203(K) loan programs has been one of their preferred ways to do so in the recent years.

Compared to conventional loan programs, the process and the requirements involved in securing 203k financing can be quite difficult. To secure a 203(K) insured loan for rehabbing or renovating a single-family home, the best choice would be to approach an experienced FHA approved lender that lends in your area. Before even approaching a 203k lender, a borrower can visit their local HUD homeownership center for preliminary assistance and guidance.

FHA 203k Loan Overview

An FHA 203k loan is a type of FHA-insured home loan that allows homebuyers and homeowners to finance the cost of repair work to improve/renovate/rehabilitate their primary residence into their mortgage. Most of the qualifying criteria are similar to the standard FHA loans that involve rehab financing. The procedures related to the renovation administration and fund disbursement are handled according to the 203k loan requirements stipulated by HUD.

A borrower can use the 203k loan program for quickly and efficiently accessing the cash necessary to pay for repairs or improvements to their primary dwelling. The work write-up and estimates based on the reports from 203k consultant. contractor and appraiser assist a 203k mortgage lender in underwriting the loan.

Energy efficient improvements, structural changes and appliances are just some of the wide range of repairs and improvements eligible for 203k financing .

Types of 203k Loan Programs

There are two types of rehab loan programs that fall under FHA 203k. The specific and appropriate loan depends on the type of repair work and the total cost associated with them. Both the loan programs can be used for either purchase or refinance transactions.

Standard (K) Program

The 203k standard rehab mortgage is used for financing properties in need of extensive repairs. Major additions and structural changes fall under this loan type.

A standard 203k loan program allows a loan amount that is 110% of the after improvement value determined by the appraisal. A 203k consultant is required to perform a thorough home inspection in order to do the complete work write-up. A minimum of $5,000 must be borrowed for the sake of repairs. The maximum loan amount depends on the proposed appraisal value. All other qualifying guidelines are pretty much similar to other FHA loans.

Streamline (K) Program

The FHA 203k streamline loan is primarily used for repairs that cost less than $35,000. Most cosmetic improvements and common repairs that do not involve structure, addition or conversion can be financed with a streamline loan. There is requirement for a minimum loan amount. The entire 203k streamline guidelines are designed to make the approval process flexible and easy.

A 203k standard program is particularly suited for projects that need major reconstruction and renovation; while the 203k streamline is appropriate for repairs that fall below $35,000. Homeowners can buy new appliances and also finance all other common repair works with the 203k program.


FHA 203k loan rehab guidelines and requirements #mortgage #online


#203k mortgage

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HUD FHA 203k loan rehab program

Search for a 203-k Consultant

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer’s credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

The FHA 203k loan program is the Department’s primary program for the rehabilitation and repair of single family properties. Basically a home improvement loan. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that FHA 203k loan is an important program and they intend to continue to strongly support the program and the lenders that participate in it.

Lenders have successfully used the FHA 203k loan program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine the FHA 203k loan with other financial resources, such as HUD’s HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with FHA 203k loan and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.

HUD also believes that the FHA 203k loan program is an excellent means for lenders to demonstrate their commitment to lending in lower income communities and to help meet their responsibilities under the Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for families in these communities and Section 203(k) is an excellent product for use with CRA-type lending programs.

This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit dwelling in one of three ways:

� To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.

� To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and rehabilitate it.

� To refinance existing indebtedness and rehabilitate a dwelling;

To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance existing indebtedness and rehabilitate such a dwelling, the mortgage must be a first lien on the property and the loan proceeds (other than rehabilitation funds) must be available before the rehabilitation begins.

To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it, the mortgage must be a first lien on the property; however, loan proceeds for the moving of the house cannot be made available until the unit is attached to the new foundation.


203K Loan Requirements and Guidelines – Understand – Apply #amortization #mortgage


#203k mortgage

#

203k Loan Requirements for the Renovation and Rehabilitation of Residential Properties

Are you looking to purchase a residential home that requires renovation work? If so, FHA 203(K) loan program may be an appropriate financing option for you.

Generally, for those who wish to buy a home that needs fixing up, the normal course of action would be to buy the property with financing through an unconventional lender such as a private hard money lender. Often times, the interest rates and fees charged on such loans are extremely high. The duration of such loans is also quite short, usually between 6 months to an year. These restrictions have generally discouraged new home buyers from purchasing residential properties in need of repairs.

If the home you wish to buy is need of minor, or major repairs, you may be able to handle the purchase transaction and also secure the necessary funds through a single loan using the 203(K) FHA rehab loan. In many situations where traditional or conventional financing is rare or non-existent for renovating a primary residence, applying through an approved FHA lender for 203(K) financing can be the best course of action.

FHA (Federal Housing Administration) is the HUD’s (Department of Housing and Urban Development) division that administers various single-family mortgage insurance programs through approved lenders to aid both the owners and new buyers of residential properties. FHA does not directly engage in the underwriting, processing or funding of the residential loans it insures. FHA approved lenders handle all aspects, from origination to closing to funding .

The section 203(K) of the National Housing Act was amended in 1978 by the Section 10(c) (1) of the Housing and Community Development Amendments. The main objective of the revision was to enable HUD to take measures that would allow for the promotion, restoration, rehabilitation and preservation of the existing housing stock in the country.

FHA’s 203(K) loan program allows new home buyers and existing homeowners to finance the cost of repairs and improvements that need to be performed on their single-family homes. FHA program requires the property to be a primary residence of the borrower. In addition to financing individuals and families, the 203(K) rehab program also provides financing to organizations engaged in the renovation of properties to revitalize neighborhoods.

Many FHA approved lenders have successfully partnered with various state, local housing agencies and non-profit companies to provide financing under the 203(K) program for initiatives that involve rehabilitation of damaged properties in challenging localities. Financial resources from other program such as HUD’s HOME, HOPE and housing grants were used in conjunction with the 203k rehab loan program to assist borrowers by various housing agencies, at all levels.

The expertise of the housing agencies has also helped a lot of 203k lenders in effectively dealing with rehabilitation application processing. A number of loan programs that adhere and complement the 203(K) guidelines have been introduced by local housing agencies to help homebuyers and homeowners in the areas they service.

Lenders are also obligated under the community reinvestment act to demonstrate their commitment to lend in lower income communities. Participating in 203(K) loan programs has been one of their preferred ways to do so in the recent years.

Compared to conventional loan programs, the process and the requirements involved in securing 203k financing can be quite difficult. To secure a 203(K) insured loan for rehabbing or renovating a single-family home, the best choice would be to approach an experienced FHA approved lender that lends in your area. Before even approaching a 203k lender, a borrower can visit their local HUD homeownership center for preliminary assistance and guidance.

FHA 203k Loan Overview

An FHA 203k loan is a type of FHA-insured home loan that allows homebuyers and homeowners to finance the cost of repair work to improve/renovate/rehabilitate their primary residence into their mortgage. Most of the qualifying criteria are similar to the standard FHA loans that involve rehab financing. The procedures related to the renovation administration and fund disbursement are handled according to the 203k loan requirements stipulated by HUD.

A borrower can use the 203k loan program for quickly and efficiently accessing the cash necessary to pay for repairs or improvements to their primary dwelling. The work write-up and estimates based on the reports from 203k consultant. contractor and appraiser assist a 203k mortgage lender in underwriting the loan.

Energy efficient improvements, structural changes and appliances are just some of the wide range of repairs and improvements eligible for 203k financing .

Types of 203k Loan Programs

There are two types of rehab loan programs that fall under FHA 203k. The specific and appropriate loan depends on the type of repair work and the total cost associated with them. Both the loan programs can be used for either purchase or refinance transactions.

Standard (K) Program

The 203k standard rehab mortgage is used for financing properties in need of extensive repairs. Major additions and structural changes fall under this loan type.

A standard 203k loan program allows a loan amount that is 110% of the after improvement value determined by the appraisal. A 203k consultant is required to perform a thorough home inspection in order to do the complete work write-up. A minimum of $5,000 must be borrowed for the sake of repairs. The maximum loan amount depends on the proposed appraisal value. All other qualifying guidelines are pretty much similar to other FHA loans.

Streamline (K) Program

The FHA 203k streamline loan is primarily used for repairs that cost less than $35,000. Most cosmetic improvements and common repairs that do not involve structure, addition or conversion can be financed with a streamline loan. There is requirement for a minimum loan amount. The entire 203k streamline guidelines are designed to make the approval process flexible and easy.

A 203k standard program is particularly suited for projects that need major reconstruction and renovation; while the 203k streamline is appropriate for repairs that fall below $35,000. Homeowners can buy new appliances and also finance all other common repair works with the 203k program.


FHA 203k Loan Lender – Your Home Renovation Solution #mortgage #calculation #formula


#203k mortgage

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Your 203K Loan Connection

What is an FHA 203K Loan?

Basically, it’s an FHA loan to purchase or refinance your home with additional funds for your home improvements. FHA which stands for Federal Housing Administration (FHA) is a mortgage insurance and is part of the Department of Housing and Urban Development (HUD). HUD or FHA do not make direct loans to consumers (homebuyers or homeowners) but FHA does insure loans that are funded by approved FHA lenders. FHA insures different types of home loans which one of them is the 203k that is used to rehab properties. The more popular version though is the FHA 203b which does not include funds for rehabilitation.

That is what makes an FHA 203k Loan different:

Most mortgage financing plans won’t provide funds to close unless the condition and value of the property are adequate enough to secure the loan. This means that the lender usually requires that improvements be made before a long-term mortgage is made. This is where the 203k loan comes into play because those improvements can now be made after the mortgage loan closes.

What Are The Types of 203K Rehab Mortgages?

There are two types of 203(k) rehabilitation Mortgages: The Standard 203(k) and the “Limited” also known as (AKA) a Streamline 203k

The Standard 203(k) Mortgage may be used for major remodeling, repairs and structural changes with a minimum repair cost of $5,000 and the use of a *203(k) Consultant is required.

The Limited 203(k) AKA Streamline may be used for cosmetic improvements, appliances and minor remodeling. The total rehabilitation cost must not exceed $35,000 and there is no minimum rehabilitation cost

*For more info about the 203K Consultant download the Free FHA 203K Guide.

What Are The Benefits of Using An FHA 203k Lender?

Many lenders offer FHA loans but the list of Lenders who offer FHA 203K Loans is short. Your best bet is to find and work with an FHA 203k Lender who is knowledgeable and experienced to guide you through the process. An FHA 203k lender can also do Regular FHA loans without renovations so working with a 203k Specialist will allow you to have additional FHA financing options without having to start the process over again.

How About FHA 203k Rates?

203k Rates in comparison to a regular FHA 203b loan without rehabilitation funds can be slightly higher but minimal. If you take into consideration the advantages of having one loan to purchase or refinance with additional funds included for home improvements with minimal down payment or equity it is quite attractive compared to any other alternative.

What Are 203k Loan Requirements?

203k Loan Requirements such as credit, income, down payment etc. are similar to the more popular standard FHA 203b loan that doesn’t provide funds for home improvements. Both have flexible guidelines with minimal down payment than most any other type of loan available. The difference between the two is that the FHA 203K will allow for the repairs, rehab or remodeling of your home to be included into the new loan while the Standard FHA 203B won’t.

Why You Might Be Here :

  • The condition of your property won’t qualify for traditional financing
  • The condition of your property just isn’t to your liking
  • The lender you are in contact with does not offer or have experience with renovation 203k loans
  • You just heard about this type of loan through maybe a Real Estate agent, another lender or someone you know

What Will You Do With the FHA 203K Loan

Has the idea of making your home your way perked your interest?
Talk to a 203K Specialist for YOUR area for more details or to get started.

Want to read more about FHA 203k’s? Then check out the 203k blog where you can find more general information on requirements, guidelines, credit scores, appraisals, rates, closing cost, down payment and more on the opportunities and options when using this type of financing.

Ask A 203K Lender

Do you have a specific question or scenario you would like answered directly by your renovation loan specialist? Then just go to your state page where your property is located for answers. Or, for a general question you can’t find the answer to, on the 203k Mortgage Lender site, then feel free to post it at the “Ask A 203K Lender” blog page.

Lenders Originators

Would you like to find out how you can be listed on the 203k Lender Directory?

Contact us for more information at :


FHA 203k Loans: Basics, Costs, and Pitfalls #wells #home #mortgage


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FHA 203k Improvement Loans

Updated August 05, 2016

An FHA 203k loan allows you to borrow money, using only one loan, for both home improvement and a home purchase. These loans can also be used just for home improvements, but there might be better options available. 203k loans are guaranteed by the FHA , which means lenders take less risk when offering this loan. As a result, it’s easier to get approved (especially with a lower interest rate ).

FHA 203k Basics

Some properties are almost perfect – the location is good, and property has potential, but significant improvements need to be made.

Without those repairs, the home might not be suitable for living, and lenders might be unwilling to fund loans on a property with problems.

FHA 203k makes it possible for you to turn that property into a home (and to get that property off the market and make it a valuable part of the community again).

Fund repairs and purchase: you can borrow enough to make your purchase plus enough to make the necessary improvements. Because the Federal Housing Authority (FHA) is involved, lenders are willing to move forward with a property they otherwise wouldn’t touch.

Temporary housing: unless you want to live in a construction zone, you’ll need funds for other housing arrangements. In certain cases, you can borrow extra to cover rent or your existing mortgage for up to six months.

Project overview: your project must be completed within six months. Funds are placed in an escrow account and paid out to contractors as the work is completed.

It’s essential to work with reputable contractors who don’t underbid and who are familiar with the 203k process.

Eligibility: owner/occupants and nonprofit organizations can use FHA 203k, but not investors. The program is designed for one to four unit properties, but condo and townhome owners can use the program for interior projects.

You don’t need perfect credit – because the FHA protects lenders in case you default, it’s easier to qualify. You still need sufficient income to cover the payments. It’s best to have a debt to income ratio better than 31/43, but you might be able to go higher.

Loan Details

You must borrow at least $5,000, and there are maximum limits set by the FHA that vary by location. For most people buying a single-family home that is not extravagant, you’ll fall into these limits. For smaller projects, the Streamlined FHA 203k allows you to borrow less (with an easier process).

You can borrow enough to finance 110% of the home’s projected value after improvement. Appraisers will review your plans and take the future value of your home into account.

Interest rate: the interest rate will vary, depending on rates in general and your credit. Expect to pay a rate that’s 1% or so higher than you’d pay on a standard loan. Think of this as the cost of easier approval (or bundling both your purchase and improvement loans into one).

Plus, lenders need to do extra work tracking the progress of your project and handling payouts. At the same time, the loan is insured by the FHA, so lenders might offer a lower rate than you’d get elsewhere. Compare offers and get the loan that works best for you. 2023k loans can be either fixed-rate or variable rate loans with repayment up to 30 years.

Down payment: with the 203k loan, like other FHA loans, you can pay as little as 3.5% up front. But there are good reasons for making a larger down payment whenever you can.

Contractors and DIY

203k loans give you the opportunity to make significant improvements to your home. You also get to do the things that matter most to you: if you want to use green or energy-efficient appliances and materials, you’re free to do so. You can’t fund luxury items through 203k, but you can make dramatic improvements.

Unfortunately, you’re generally not allowed to do the work yourself. Even if you are a skilled, licensed contractor, don’t expect to handle all of the work.

You must use licensed contractors for all work, and it’s important that they know you’re using 203k. This might rule out certain handymen you’ve used in the past and have developed a relationship with. The 203k process is all about paperwork and following certain rules, so brace yourself for less freedom than you might have imagined when remodeling your home.

Pros and Cons

203k loans are great for improving a property that you hope to live in. However, benefits never come for free.

Cost: FHA 203k loans might or might not be your most affordable option. You’ll pay an up-front mortgage insurance premium (MIP), and you’ll also pay a small ongoing fee with each monthly payment. Your lender may also charge a supplemental origination fee (the greater of 1.5% or $350). Other non-203k lenders will certainly charge fees, so you need to get quotes from several sources (looking several different types of loans) before you make a decision.

Paperwork: these loans are notorious for the paperwork. You’ll fill out numerous forms, and your contractors are also subject to some of this pain. If you don’t have the patience to follow through on everything, consider other options.

Time: in addition to the time it takes to deal with paperwork, you’ll have to wait on answers from the FHA and your lender. They’ve got just as much (or more) paperwork to do on their end. Especially if you’re trying to buy a property in a competitive market, this can be a dealbreaker.

Required standards: you might have certain improvements in mind, but the FHA also requires that you deal with health and safety issues and meet all building codes. Lead paint, electrical problems, and other items may be added to your project list unexpectedly. Dealing with those issues is probably a good idea anyway, but you have less choice on when and how to fix those problems.