Maryland FHA 203K REHAB loans

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Mortgage and Lending with Academy Mortgage

203K REHAB LOANS

Ø     This loan allows a customer to finance the purchase price, or the existing balance, and the cost of improvements into the loan amount. 

Ø     Loan amount is determined by using the after improved value.

o       Can lend up to 110% of after improved value up to the FHA loan limit.

Ø     Single close, fully amortized loan.

Ø     Work is completed after close.  Funds are held in an escrow account and disbursed as the work is completed.

Ø     1-4 units, Condos,  mixed use properties; Owner occupied only.

Ø     6 months to complete the work.

Ø     Eligible with most local housing authorities.

Ø     Same underwriting guidelines as the 203B

203K Streamline

Ø     $5K - $35K in repairs (no structural, mainly cosmetic, appliances, upgrades, etc).  Repairs are health and safety, livability, no luxury.

Ø     No HUD consultant

Ø     No inspections required for rehab amounts under $15k

203K

Ø     $5k minimum in repair amount.  Most repairs allowed, still no luxury (pools, etc).

Ø     HUD consultant required

Ø     Inspections required prior to draw

Ø     Can finance up to 6 months PITI into the loan if the home is uninhabitable during rehab.

Call Bill Sohan at 410-963-2308 for more information.

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