Special Government Rehab Program- FHA 203K Mortgage Loans in Frisco Texas.
This article will explain the little-known special government loan program that is part of FHA (Federal Housing Administration- a department within HUD).
A home buyer or existing home owner can remodel or update their home without having a higher cost second lien thanks to this special FHA loan program.
You are not allowed to finance "Luxury items" such as a hot tub or swimming pool through this FHA loan program. Repaint, remodel cabinetry in kitchens and bathrooms, add wallpaper, replace appliances and flooring and even add a room to an existing structure (which will increase the value of the homes square footage).
The biggest advantage with this government loan program is that instead of having two higher interest loans, you can combine your primary mortgage and your rehab costs into one low government loan and interest rate.
This FHA loan program is called a 203K loan, as defined by the Federal Housing Administration. For more information, please visit the FHA website: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou
Lenders have to be approved by HUD in order to do this loan program. To avoid delays, it is essential that you go with a lender that can offer in house underwriting and expertise instead of using a mortgage broker due to the intricacies of the loan program.
Two types of loan programs within the FHA 203K Mortgage Loans in Frisco Texas exist. The first is what is called a streamline 203K loan. When using a 203K Streamline loan, there can't be any structural improvements and the dollar amount is generally lower (less than $35,000) for a 203K streamline loan.
Only basic cosmetic repairs are allowed with a Streamline 203K loan. These are items such as painting, plumbing, electrical, and flooring. The second type is a Full 203K loan. A full 203K loan offers structural improvements like adding another room or doing foundation work and you can also do rehab or renovate your current property.
It's now possible to envision new carpeting, paint, a remodeled kitchen or bathrooms and lighting when looking for your new home and have the home of your dreams, which will give you much more flexibility in your home purchase or to remodel your existing home.
For more information on renovation or rehabilitation of your home using FHA 203K Mortgage Loans in Frisco Texas please reach out to Joy Bates, our Senior Mortgage Banker at 817-860-3232, email her: joybates@leader1.com or log on to http://friscohomemortgageloan.com to request more information.
Joy originates loans all over Texas.
Comments(0)