FHA 203k Loans

FHA 203k Loans

Delaware Home Renovation Loans – 3 Finance Options to Choose

John Thomas November 12, 2017 Tags: , ,
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Delaware Home Renovation Loans – 3 Finance Options to Choose

Renovation loan programs come in all shapes and sizes. Whether you need a few repairs, paint touchups, major reconstruction or some luxury upgrades, the right renovation loan for your project is available. It’s crucial to find the renovation loan program that fits your needs the best. PRMI Renovation Loans offer three great financing options that are tailored to fit the needs of Delaware homeowners.  Call 302-703-0727 to explore your options with a renovation specialist or begin the process online – GET STARTED ONLINE. Keep Reading...

Renovations NOT Allowed on FHA 203k Loans

John Thomas February 24, 2016 Tags: , ,
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What Repairs Can I NOT Do With a FHA 203k Loan?

FHA 203k program is flexible and allows a lot of leeway when it comes to the property you can buy and the repairs, renovations and upgrades you can complete as part of the loan.

You can finance everything from second story additions, to finished basements, new kitchens or that large master suite you always wanted.

There are, however, some repairs that you can not do as part of the 203k process. So, what are the improvements you absolutely can’t do with a 203k?

Outbuildings | Guesthouses | Non-Attached Structures

The property you want to purchase has a second structure; a rental cottage, pool house, guest house, detached converted garage, workshop or superlative storage shed. That structure is not in good condition and needs some work. Keep Reading...

FHA 203k Streamline Now the “Limited 203k”

John Thomas February 9, 2016 Tags: , , , ,
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FHA 203k Limited (Streamline 203k)

FHA has offered the 203k loan for decades. They introduced the FHA 203k streamline a little later, but it is certainly not a new mortgage product. Recently, the 203k streamline was retitled the – Limited 203k – despite the fact that the guidelines saw little change.

Despite that, most lenders execute the loan in a substandard fashion. It is simply not a priority and that is evidenced by their general lack of education displayed by their loan officers.

Unfortunately, much of the information online reflects that lack of training. It’s either outdated or ill-informed. In fact, you’ll be hard-pressed to find another mortgage loan product with as much poor and inaccurate information surrounding it than the 203k. Keep Reading...

Delaware FHA 203k Loan Overview

John Thomas June 26, 2010 Tags: , ,
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Delaware FHA 203k Loan Overview

Delaware FHA 203k Loan Overview

The FHA 203k Renovation Loan in Delaware is a great way to purchase a new home in Delaware in need of repairs or renovate your current home. Think of it as a one-time-close construction loan but with more relaxed standards because its insured by FHA.  Below are some of the highlights and some useful information providing a Delaware FHA 203k Loan Overview.  If you would like to discuss your unique situation or to apply please give me a call today at 302-703-0727 or APPLY ONLINE

Advantages of FHA 203k Rehab Loan:

  • Allows repair/renovation costs to be rolled into the loan
  • Major items (such as foundation repair) ARE allowed
  • Low down payment (3.5%) and the seller can still pay up to 6% of your closing costs
  • Close before the repair/rehab begins
  • Only one closing, money is disbursed on a draw basis after closing directly to the contractor
  • Buyer can include optional upgrades (such as granite counters)

Examples of FHA 203k Loan Repairs/Renovations Allowed:

  • Foundation Repair
  • Replace Roof
  • Paint Interior & Exterior
  • Install New Flooring or Upgrade to Hardwood
  • Remodel Kitchen/Bath
  • Upgrade Central Heat/Air
  • Repair Termite or Moisture Damage
  • Energy Efficiency Improvements
  • Replace or Install Siding
  • Make Home Handicap Accessible
  • Landscaping/Exterior Repairs
  • New/Upgraded Appliances
  • And More! Call or Email to Find Out if Your Specific Project Will Qualify

The FHA 203k Loan Process:

The process is quite simple if you are working with a Certified Mortgage Planner. Keep Reading...

Delaware FHA 203k Rehab Loan – Selecting Contractors

John Thomas May 15, 2010

Delaware FHA 203k Rehab Loan – Selecting Contractors

Here are the guidelines you must follow when selecting a contractr to give a bid for the repair work:

CONTRACTORS AND REHABILITATION CRITERIA

1. Must use contractors to complete repairs/rehabilitation (unless borrower can demonstrate needed expertise/experience)

2. Use of contractors:

A. Borrower selects contractor

B. Contractors provide estimates for the work to be done, if applicable

C. Lender must review the contractor’s credentials verifying jurisdictional requirements for licensing, bonding & insurance are met (need copy of all these docs) Keep Reading...

Delaware FHA 203k Loans – Can you still use Down Payment Assistance?

John Thomas March 17, 2010 Tags: , ,

Delaware FHA 203k Rehab Loans are used to repair or renovate properties all in one loan when you purchase a property.  A typical question for a first time home buyer is if you can use one of the down payment assistance programs with an FHA 203k loan such as the Delaware State Bond Program.  The answer is “no” because the bond loan is originate by a bank and then bought by the Bond program investor.  The 203k Loan can’t be bought right away because a repair escrow is setup for the repairs to be done and the distribution of those funds must be managed by the lender which the bond investor is not going to do.  Most down payment assistance programs also require that the property meet occupancy requirements. Keep Reading...

What is a Delaware FHA 203k Streamline Loan?

John Thomas March 14, 2010

FHA 203(k) loans provide cost-effective, single close loans that enable borrowers to purchase a home that may need repairs or refinance their existing home for the purpose of remodeling.

With the Delaware FHA 203k streamline loan you can borrower up to $35,000 into the mortgage to make improvements or repairs.  The program includes the necessary funds for the renovation by financing the “as-completed” value of the home, rather than the present value.

The Delaware FHA 203k loan is a great option for the following situations Keep Reading...

Delaware FHA 203k Rehab Loans for Bank Owned Properties

John Thomas September 24, 2009

The increase in foreclosures has increased the number of houses listed for sale in Delaware that are owned by banks.  The banks have taken the homes by foreclosing.  The banks list the properties for sale in “as is” condition.  This makes it tough for qualified buyers to purchase some of these homes because traditional FHA Loans and conventional loans may require some repairs be completed prior to closing that the bank will not due.

The solution to this problem is the Delaware FHA 203k loan.  For most of these properties the repairs are not major and are best suited to a streamlined version of the FHA 203k loan.  The streamline is much quicker and easier to do than a full 203k.  The program allows the buyer to borrower the cost for the repairs and doesn’t require them to be completed before closing. Keep Reading...