Special Government Rehab Program- FHA 203K Rehab Loans in Basalt CO. This article will explain the little-known special government loan program that is part of FHA (Federal Housing Administration- a department within HUD). A buyer or existing home owner can do meaningful amounts of remodeling or updates to their existing home without having a higher cost second lien thanks to this special FHA loan program. "Luxury items" such as a hot tub or a swimming pool are not allowed with 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.
The name of this FHA loan program as defined by the Federal Housing Administration is a 203K loan. 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. 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. Using a broker can cause unnecessary delays in the process. Two types of loan programs within the 203K Renovation Loan for Basalt CO exist.
The first is what is called a streamline 203K loan. There can't be any structural improvements on a 203K Streamline loan and the dollar amount is generally lower 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.
A Full 203K loan is the second type of a 203K loan. With a Full 203K loan you can do structural improvements like adding another room or doing foundation work as well as the ability for the home owner to rehab or renovate their current property. Envision new carpeting, paint, a remodeled kitchen or bathrooms and lighting when looking for your new home.
Now you can have the home of your dreams which will allow you much more flexibility in remodeling or in your home purchase.
To get more information on renovation or rehabilitation of your home using a FHA 203K Renovation Loan for Basalt Colorado or surrounding areas please contact RJ Baxter, Senior Mortgage Banker at 303-670-0137 or log on to http://www.cohomesandloans.com and request more information.
RJ does loans all over the state of Colorado.
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