The FHA 203(k) loan programs have been around a very long time, over 30 years, but they have only become very popular in the last decade or so. This is most likely because many bank owned properties and foreclosures are in poor condition, do not meet FHA requirements, and require some renovations. Another reason the loan programs may not have been as popular in the past is many lender's did not handle these type of loans, but that has quickly changed in the past 10 years. More and more lenders are offering rehab loan programs and the process is becoming easier with each loan. Beyond the FHA 203(k), there are similar options available.
FHA 203(k) Renovation Loans
The FHA 203(k) program has 2 different options: Streamline or the Full loan. The streamline loan is an easier loan with less paperwork and approval timeline, but it does have a maximum for repairs capped at $35,000. This loan does not allow for major structural changes. The full loan process can be lengthy, require permits, and will use a 203(k) consultant/inspector. However, this loan option does allow for significant changes and much higher loan amount. I have experience in both types of loans, but so far, the Streamline loan has been significantly more popular.
HomePath Renovation Loans
The Homepath renovation loan is offered by Fannie Mae and very similar to the 203(k) streamline loan. The repairs are typically capped at $35,000 and structural changes are not allowed. This loan is only available for Fannie Mae owned properties.
Other Bank Renovation Loans
Most lenders offer other renovation loan options that may work better with your specific situation. One example is from Wells Fargo. They offer a Purchase and Renovate or Refinance and Renovate loan. It can be similar to a conventional mortgage with the rehab costs added in as part of overall mortgage.
I expect these loan programs will remain popular and good options for home buyers, especially in FL, because there will still be many properties requiring rehab/renovation in the near future. Please contact a lender for more specific information on your loan options.
If you would like more information or a lender referral, please contact me for more details.
Brandon Leske
Hybrid Construction LLC - 203(k) Loan Contractor
bleske@hybridgc.com
www.hybridgc.com
ReplyDeleteTESTIMONY ON HOW I GOT MY LOAN.
Complement of the day, My name is Jimmy Wallace, I am from Texas USA, I have been searching for a genuine loan for the past 5 months now and all I got was bunch of scams who made me to trust them and at the end of the day, they took my money without giving anything in return, all my hope was lost, I got confused and frustrated,then i find it very difficult to feed my family, I never wanted to have anything to do with online loans again, so I went to borrow some money from a friend, I told him all that happened and he said he can help me, that he knows a honest lender that can help me, that he just got a loan from Mrs Julian Smith, he directed me on how to apply, I did as he told me, I applied, I never believed but I tried and to my greatest surprise I got the loan of $87,000 on the 23rd of April 2015 within 48 hours, I could not believe, I am happy and rich again and I'm thanking God, because i don't believe honest lenders like this still exist upon the high rate scams all over the globe, I would recommend this honest lender to everyone! here is the email that i used in contacting her: juliansmith14@hotmail.com OR view their Website: http://juliansmithsloan20.wix.com/julianloan