FHA 203(K) and 203(K) Streamline Loans for flood Victims in Nashville and Williamson County TN.
I am not a flood Expert. I am sure there are many resources available and they should be utilized to the fullest extent possible prior to looking at a new loan. Perhaps the resources are not there for the home owner to complete the rehabilitation on the property they own. FHA may have an answer.
The FHA 203(K) Loan. It is the Federal Housing Administration’s primary program for the rehabilitation and repair of single family properties. This can be for the purchase or refinance of the primary residence.
Simply put the 203(K) Loan will allow for the money to be borrowed and set aside for the repair and rehabilitation of a primary residence. It must be a 1-4 unit property. It can be used to convert a one family dwelling into a 2, 3 or 4 Family dwelling. And it can be used to tale a Militia unit dwelling down to a 1 to 4 unit dwelling. Condominium units are may also be eligible. If the home has been demolished or razed it may still be eligible providing part o f the original foundation remains.
What the 203(K )loan is based on is a subject to appraisal and the loan to value is based on the completed project. What are needed is the Work Write-Up and Cost Estimate including the cost of materials and labor. The appraiser will then determine the finished value. If the finished value supports the loan then you can proceed forward with the process.
At closing the existing liens would be paid off. The excess money for the work would be placed in an escrow account and the funds would be released in accordance with the Work Write-Up and Draw request.
Improvements that are eligible under the 203(K) loan include:
Structural alterations and reconstruction
Changes for improved functions and modernization
Elimination of health and safety hazards
Changes for aesthetic appeal and elimination of obsolescence
Reconditioning or replacement of plumbing
Installation of well and/or septic system.
Roofing, gutters and downspouts.
Flooring, tiling and carpeting.
Energy conservation improvements
Major landscape work and site improvement
Improvements for accessibility to a disabled person
The 203(K) Streamline Mortgage is a Limited Repair Program that allows for the borrower to access up to $35,000 for uncomplicated renovations.
For more information visit: Rehab a Home with HUD's 203(K).
First Community Mortgage, Inc. is a FHA 203(K) approved lender with 81 areas approved for business. Please call Lee barroll at 615-243-1301 or visit www.leebarroll.com for more information.
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