Friday, July 27, 2012
Have You Heard About FHA 203K Loans? - They Are Back!
Do you have clients looking for a "fixer upper" home? Does the home need repairs that your borrower doesn't have the cash to fix at closing? There's a solution!!
HUD has developed a new FHA insured mortgage program, called the "Streamlined 203k" Limited Repair Program that permits home buyers to finance up to an additional $35,000 of repairs into their mortgage to purchase and improve or upgrade the home before move-in or to refinance an existing mortgage and add up to $35,000 in repairs or improvements. With this new product, home buyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. Unlike the standard 203(k) program, any FHA approved lender may originate a Streamlined 203K mortgage.
These types of loans close in 30 to 45 days- The borrower has 6 months to complete the repairs (you don't have to wait to close the deal after repairs are completed!!)
Purchase or Refinance!
Qualified Transactions = Multiple Marketing Channels:
o Purchase and renovate a home- Short Sales, Foreclosures, "Fixer-Uppers", Etc. Find a bargain for your buyers and help them turn it into the home of their dreams.
o Refinance- Work with homeowners wanting to renovate, remodel or upgrade.
o EEM Refi- Energy Efficient Mortgage Upgrades, including SOLAR OK.-
o Work with local remodeling contractors and EXPAND your referral network.
What is Renovation Lending?
o Renovation Lending is simply adding the cost of repairs and improvements into the mortgage to purchase or refinance a home.
o A Renovation Mortgage is a single, first lien position mortgage
o Same that qualify for FHA-Owner Occupied
o 1-4 units, including converting a 1 unit to a 4 unit or a 4 unit to a 1 unit.
o Condos and town homes- interior renovations only
o Differentiate yourself from other agents and create a highly profitable niche
o Loan closes in normal time frame.
o Seller's are no longer responsible for doing repairs, good for buyers
o Customers can create equity, fast!
Article Source: http://EzineArticles.com/3104275
Posted by 203konline