Say Yes to the FHA 203k Home Loan

Come experience the happyrenovation loan today.

Most people have heard about all of the new Government lending programs, but are not familiar with their rehabilitation loan. These Government loans are granted under the terms of section 203k of the National Housing Act and are to help homeowners turn foreclosed or damaged homes into a wonderful place to live.

In order words, theses programs allows you, the borrower, to finance the cost of home repairs and certain types of home renovations into the loan when its a home you are purchasing or one you already own.

The same rules apply to these loans as to standard FHA loans. They can only be used on homes that the homeowners plan to occupy as their primary residence and applicants must be prepared to document their income and employment history.
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Why a happyrenovation loan? Compare  Standard purchase vs. happyrenovation

               Standard Puchase      happyrenovation

Can you do minor repairs                                             No                                Yes

New kitchen including countertops, appliances                       No                                Yes
Carpet/Hardwood Flooring                                           No                                Yes

Finance up to 110% of value                                       No                                Yes

Use value after repairs                                                 No                                Yes

Add a Room Addition- Up or Out                                  No                                Yes

Finance up to 6 mos mortgage payments                   No                                Yes

Replace bathrooms, carpet, paint                                No                                Yes

Finish basements                                                        No                                Yes

Windows, doors, siding, roof                                        No                                Yes

Painting & aesthetic repairs/upgrades                         No                                Yes

Make Your home handicap accessible                          No                                Yes

Decks, patios, porches, sunrooms                              No                                Yes

Energy efficient upgrades – Go Green!                                   No                                Yes

Health & safety concerns:  mold or Infestation           No                                Yes                                                                      

And DON’T FOGET:  You can finance up to 6 months of your mortgage payments while renovations are being completed.                   

What you can do with a happyrenovation loan is endless.

Making Sure the Homeowner and the Lender are Protected
Many people recognize the value of these loans and their ability to stimulate the housing market, but are not aware of the safeguards that are in place to ensure that the loans are structured properly to make sure the homeowner will never end up in a negative equity position.

Feel confident, happymortgage has a very qualified team of specialists to walk you through your transaction. You will not only have an exceptionally trained renovation originator and processing staff, but you will have a specially trained renovation appraiser as well as a personal renovation consultant. Together they will walk you through every detail of the origination process.

Another level of protection is the appraisal process. Before the loan can be approved, an appraisal is completed in order to document the current value of the home, as well as what the value will be once the planned repairs and renovations have been completed.

Lastly, contractors who perform the repairs and renovations financed by this program must comply to FHA guidelines. It is important to find one who has worked with the rehabilitation  loan program before, or at least is familiar with the program’s regulations. For that reason we will give you 5 recommended companies you may interview.  Also important to note is that the work must begin within thirty days of closing and must be completed within six months.
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Not Everything Qualifies
Although the list of repairs and renovations that can be financed with an FHA 203k loan is extensive, there are some projects which are ineligible for this type of loan. You may finance roof  repair, any plumbing or electrical work, and any renovations that add tangible value to the house, but you may not repair a cracked foundation or do any other major structural repairs.

The FHA 203k loan also does not allow homeowners to finance luxury items, such as pools, but does allow them to use high-end materials, such as granite, for their renovations.

The FHA 203k program can help people turn foreclosed or otherwise damaged homes into a very pleasant and comfortable home. With this program, the FHA is helping people increase the value of their property, stimulating both the housing market and the economy itself.

So SAY YES call us today and let us show you how to turn an ”ok house”into the home of your dreams.

Want more details on how the FHA 203k can help you and your home buyers, contact Bill WhitemoreManager of the 203k division at Happy Mortgage.  

Bill Whitmore

443.618.4093/ Bill@HappyMortgage.com