Buying a fixer? Handyman special? Which mortgage to get? What's the difference between a Full 203K and Streamline Mortgage?
This information is very important, particularly in areas where they have several older homes just waiting for the next property owner to fall in love with it.
I have one such client who decided a dilapidated home is what she wants --- good location, nice sized lot, but very sad building.
Thankfully, we have Garrick who got them a 203K loan, and they're very happy. For people who still haven't ventured out to getting a 203K loan, perhaps Garrick's blog will convince you to check it out.
Thanks, Garrick!
Alameda, CA is a town with many beautiful Victorian and Craftsman style homes. Often an older home will come onto the market that has great potential but could use a little TLC. How can a homebuyer purchase one of these Alameda homes and afford the repairs? A 203K rehabilitation mortgage is just the thing!
Many clients and Realtors we know have questions about this type of loan, for example what is the difference between a 203K Streamline and Full 203k? Well in a nutshell, here are a few key points:
Key points of 203K Mortgages:
•·Not just for repairs
•·Dated homes
•·Remodel kitchen or bathrooms
•·Razed homes
•·Foundation repairs
•·Pool repairs up to $1500
• Mold or Lead based paint
•Termite damage (cannot include the inspection)
Streamline K
•·Maximum repair amount of $35,000
•·Streamline is for small projects that involve 1 or 2 specialized contractors
•·Any HUD, bank owned or vacant home is not eligible regardless of dollar amount
•·Would not have a HUD consultant
Full K
•·No maximum repair amount
• HUD approved consultant is brought in to do the inspection
•· Consultant prepares write up for project after meeting with borrower and discussing borrower's wish list and the items that need to be done to bring the home to HUD's minimum property standards
•·Borrower uses write up from consultant to find general contractor's to bid the project.
•·Accept bid from general contractor
This loan will take a little longer to close, depending on the scope of the work to be done. But what a reward to purchase a beautiful older Alameda home, get the repairs done and move into the home of your dreams!!
For more information on 203K Rehabilitation loans (Streamline K or Full K) contact the Werdmuller group! We are in contact with a local 203K consultant and contractor with experience doing these types of transactions, successfully!
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