Inventory Issues - Open Up Your Options

Mortgage and Lending with Bay to Bay Lending, LLC NMLS 343112

If you are like some of my prefered agents, you have a stack of pre-qualification letters for clients that you simply cannot find a home for.  If your market is like the Central Florida Market, move in ready homes in the sweet spot middle class price range often wind up in bidding wars, on the market for only hours, not days, and not much else other than homes in need of work.   

Hopefully this blog helps you understand the FHA 203(K) Streamline Rehab Loan.   The first thing you need to ask yourself as a realtor - prior to going out and showing your client a property that can go 203(K) is this..

Can my lender do them, and do them well, and fast?

There are many intricacies to the 203(k) - so please ensure you have a seasoned loan professsional who is not experimenting with his first 203(K) loan at your service or you and your client will regret your decision.  

Most 203(K) loans, with clients that understand there are deadlines, can be closed in under 45 days.  That should not he hard sell to a seller (mostly banks or short sellers) for a 45 day contract versus sitting around waiting 60+ for a cash offer.

Below are some highlights of the 203(K).

If you have any questions on 203(K) loans in the state of Florida please do not hesitate to contact me with any questions - we niche/specialize in the 203(K) product.  I am a licensed loan originator with more than 10 years experience with this prodcut - Tony Marra 813-842-7999 or visit my web page at   


FHA 203(K) Streamline

Are you having a hard time finding your client a home in this low inventory environment?

Have you shied away from re-hab loans because they are a foreign animal?


If you answered yes to either question I strongly encourage you to look at the FHA 203(K) streamline program.  At Bay to Bay Lending we are true mortgage professionals – and we are experts at every loan product – including the sometimes often mis-interpreted, and misunderstood loan product, the FHA 203(K) 

The FHA 203(k) program, enables borrowers to either purchase or refinance their  home while including rehabilitation costs in the same loan.



Why 203(k) Streamline?

1. Up to $35,000 in repairs for homes conventional financing won’t touch.

1. Perfect for HUD REOs, foreclosures, and short sales

2. Improvements to out-dated homes, kitchens, bathrooms, etc.

4. No HUD Required Classes

5. Buyer does not have to use a HUD Approved  Contractor

6. Only one appraisal needed

7. Opens up the limited inventory market.


The reason most real estate professional shy away from these loans is they don’t have confidence their lender can close them – we are 203(K) experts you can rely on to broaden your horizons in this competitive environment.


Improvements Allowed

203(k)s Explained

• Minor remodeling that does not involve structural repairs

• Existing well and septic minor repair

• Basement waterproofing

• Mild mold remediation

• Heating, ventilation and air conditioning systems

• Plumbing and electrical systems

• Flooring, exterior and interior painting

• Weatherization, including storm windows and doors,

insulation, weather stripping

• Replacement of window and doors and exterior wall re-siding

• Appliances, including free-standing ranges, refrigerators, washers and dryers,

dishwashers and microwaves

• Improvements for accessibility for persons with disabilities

• Lead-based paint stabilization or abatement of lead-based paint hazards

• Replacement/addition of exterior decks, patios, & porches

• Roofs, gutters and downspouts




Property Types

203(k)s Explained

• Owner Occupied Properties Only (FHA)

• Single Family Residence

• Manufactured Homes

• FHA Approved Condo’s

• PUD’s

• 1-2 Unit Properties (no 3-4 units)

• REO, Short Sale, Foreclosure Ok!


203(k)s Features

• Up to $35,000 in non-structural renovation allowed  

• No HUD Consultant required  

• Must utilize borrower directed licensed contractor

• No self help allowed  

• 2 Draws

• Initial draw of up to 50% of repair costs is disbursed at funding


• Final draw after final inspection 

- See more at:

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