Tag Delaware FHA 203k Loan

Tag Delaware FHA 203k Loan

Is the Limited FHA 203k Different from the Streamline 203k?

John Thomas March 11, 2016 Tags: , , ,
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FHA 203k Limited – How Is It Different from the Streamline 203k?

The Limited FHA 203k has arrived. In September of 2015 the staple of renovation financing – the Streamline 203k -got a facelift and was replaced by the new and improved Limited FHA 203k.

So, what changed with our favorite renovation loan and how will it affect Delaware borrowers looking to employ FHA 203k financing?

Many of the changes were semantic – updating disclosures, forms and worksheets – and will have little affect on how you obtain renovation financing or the scope of work you are allowed to employ. 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 It’s either outdated or ill-informed.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 it’s 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.

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 with a Delaware FHA 203k Lender. 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 originated 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 set up 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...

Is it possible to get a Delaware Mortgage for more than the home’s value?

John Thomas January 2, 2008 Tags: , ,

Can you get a Mortgage Loan for more than the value of your home?

If you want to refinance a home you already own in Delaware, there are mortgage programs that allow you to borrow up to 150 percent of the home’s value. The program is under the special program created by the economic stimulus bill of 2009 is called the HARP Program.  It is only to lower your current mortgage rate or to switch from an ARM to a fixed rate.

It is generally not possible to buy a home and borrower more than it is worth.  One exception is buying a fixer-upper property.  There are Delaware loan programs (Delaware FHA 203k Loan) that allow you to borrow the purchase price plus the cost of the fix-up.  Both you and the property must qualify.  You must qualify income-wise and credit wise (640 Minimum FICO score).  You are able to borrow up to 110% of the after repaired value of the home on an FHA 203k Rehab Loan.  The after repaired value is based on the repairs/renovations being done on the property. Keep Reading...