I am reBlogging this post as part of the Eco-All-Stars February share the Link Love Challenge... It is such helpful information and could be time-appropriate for many in this economy...read JASON's post about the FHA 203(K) Renovation Loan just below...
Back in my early days of lending, I recall quite vividly the very first Rehab Loan I did. While I did some legwork in actually knowing the ropes of that particular product before advertising the bejesus out of a very niche loan, I still was caught like a reindeer in some oncoming car's speeding headlights when trying to get them closed in a streamlined sort of fashion. And then, I had it mastered. As my particular luck would have it, most of those programs disappeared shortly thereafter.
The echoes in the back of my head rang of a long-lost product I had only heard about and most of what I heard were borderline horror stories. The FHA 203(K) loan reared its mysterious head and stared me in my wide-eyed glance. I gotta admit, there was major hesitation on my part in even wanting to get involved in such a misunderstood product. I knew little about it and wanted to concentrate more on the Conventional sort of stuff that I grew up with in the industry... at least at that point. Hey, of course I want to corner the market, but not at the risk of looking like an incompetent SOB at the end of the day.
Then, I encountered experts in that very product. I figured, let's roll repair.
After doing more homework than my combined High School & College Education would vouch that I did back in the day, I chose to go after a market that just may make a dent in not only enhancing the housing market... but the very neighborhoods we live in.
This is just a taste of the FHA 203(K) Renovation Loan!
- Add a deck or porch, makes for one heck of a Summertime BBQ.
- Upgrade the electrical system and avoid reading overdue utility bills under candlelight.
- Modernize the kitchen and watch the The Food Channel in a comparable stadium.
- Replace a furnace and heck, it's a furnace. You really don't want that entity breaking down anytime soon!
- Paint the exterior and/or interior. Yours could be the only lavender house in the neighborhood:)
- Install new carpeting. There's nothing like getting rid of stained residue from a German Shepard you never owned.
- Remodel a bathroom. Hey, might as well let loose of your naked body in comfortable surroundings!
- Replace roofing and/or siding. There were 58 mile per hour winds in Pennsylvania today, that stuff may come in handy.
- Refinish wood floors. That's a big selling point for yours truly. I adore wood floors and have an aggressive amount of ShamWow merchandise to prove it:)
- Low down payment
- Buy and remodel a home with one mortgage! You can finance the purchase plus the cost of the improvements with one monthly mortgage payment.
- At least $5,000 in repairs needed to qualify for the 203(K) Loan.
- They can be used for owner occupied 1-4 unit family dwellings.
- Closing takes place before the improvements/repairs are made.
- Money for the repairs and renovations is held in an escrow account and paid out after each phase of work is completed, inspected and approved.
- By the way, they are fixed rates!
Consider this the teaser post to the taste buds of home renovation lending. Yup, I'm your proverbial appetizer.
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