The HomeStyle Renovation Mortgage provides a convenient way for your borrowers to make renovations, repairs, or improvement totaling up to 50 percent of the as-completed value of the property with a first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly financing method. This option enables borrowers to obtain a purchase transaction mortgage or a limited cash-out refinance mortgage and receive funds to cover the costs of repairs, remodeling, renovations or energy improvements to the property.
If you need help promoting your distressed listings, the FHA 203(k) loan may be just the right product at the right time! There are many FHA-qualified families out there that are interested in buying a fixer-upper property and they can take advantage of the opportunities with the unique product.
The FHA 203(k) loan is a single loan which allows the purchase of the home AND the repair costs to be combined. This products gives buyers the flexibility to take advantage of the market by purchasing an affordable home that needs some TLC, close on it as-is, and begin repairs after closing.
Real estate agents and home buyers are scrambling to adjust to today’s real state market which is filled with foreclosed homes that have suffered from disrepair and neglect. Many banks that own these foreclosed properties are unwilling to repair them. As a result, many foreclosed properties do not qualify for traditional loan programs. FHA’s 203(k) loan program provides the funds necessary for both the purchase AND the renovation of a home. The maximum loan amount depends on HUD-determined loan limits which are set on a county by county basis.