FHA 203k Streamline Rehab loans are a great way to purchase a property and revitalize your community. FHA has made the rehabilitation process easier for buyers by enabling them to finance the acquistion of the property and rehabilitation in just one transaction. There is no need for second mortgages or expensive bridge loans. The FHA 203k Streamline loan is the right loan if you are looking to purchase a home that needs a little upgrading or minor repairs.
The FHA 203k Streamline rehab loan works similiar to a regular FHA loan in terms of qualifying. A buyer must have good credit and documentable income. A 3.50% down payment is all that is required. It is a good idea to prequalify for the FHA 203k loan before you spend money on such things as an appraisal or home inspection. Click on this link to begin the prequalification process now. http://www.approvingcalifornia.com/
A buyer on a Streamline FHA 203k rehab loan may get up to $35,000 towards eligible repairs. In order to receive the FHA 203k rehab funds a FHA licensed appraiser must do an appraisal that validates the property's value after the repairs are made. For instance, if you planned on purchasing a home for $200,000 and make $25,000 in repairs then it must appraise for $225,000. Eligible properties are single families, pud's, FHA approved condos, and 2-4 unit dwellings as long as one unit is owner occupied. REO's, foreclosures and short sale purchases are permitted as well.
Eligible improvements must be permanent and add value to the property. Keep in mind that FHA 203k rehab loans are for minor remodels and are not for structural improvements. An upgrade of a bedroom or bathroom can be done on a FHA 203k Rehab loan. You may finish exterior decks, basements, attics, roofs, new siding and fences. FHA 203k rehab loans also allow for safety upgrades to HVAC systems, plumbing, electrical, flooring and appliances. Weatherizing is an acceptable improvement as well, such as adding storm windows. Ineligible improvements are anything that is considered luxury items or foundation repairs. Also, ineligble are any repairs requiring plans or architectural drawings. However, FHA 203k rehab loans allow for $1,500 in improvements to existing pool and spas.
A key part of the FHA rehab loan is finding a qualified Contractor. Your contractor must be qualified to do the job. The contractor must be able to provide references, have general liability insurance, Bond and workman's comp insurance is required. Make sure you do your due diligence and find a contractor who can satisfy these requirements.
If you are interested in prequalifying or learning more about the process please call 858-848-0048 or email me t mwalsh006@gmail.com today. You may also begin the FHA 203k Renovation prequalification process by clicking here: http://www.approvingcalifornia.com/
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