How many times you have gone out looking at a home that you liked but it needed so much work that you didn't think you could afford to fix all the items that needed fixing. Your agent told you to go and look at another home. You listened and looked at other homes and every home you looked has some kind rehab that needed to be repaired before you can move in. This is very common in this in market. Areas like Burnsville, Eagan, Apple Valley, Bloomington to name a few. The market is saturated with bank-owned properties that require repairs. The three main rehab items are the floors, the walls and there are no appliances. There are of course other big buck items such as the furnace, roof, windows and siding to name a few. As a first time homebuyer, you probably don't have a lot of money to invest into your first home. There is a solution. The solution is a FHA 203K streamline loan. With a streamline 203K mortgage, the rehab cost is calculated into the original loan balance, resulting in one loan. The appraiser or home inspector will compile a list of recommended repairs/improvements. The streamline 203K eliminates the need for a consultant and consultant's fees.
Eligible Borrowers:
* Owner occupant-Purchase & refinance
* Non profits
* Investor not allowed
* Maximum mortgage amount is $365,000 including all repair costs
FHA Streamline 203K Highlights
* May be used for purchase or refinance of one-to-four (single family), owner-occupied residences
* For less complex projects that require no plans or specs
* Maximum $35,000 total rehab cost
* Fixed-rate mortgage available
* No minimum loan balance required
* Work must commence within 30 days from closing
* Work must be completed within six months
Ineligible Repairs & Improvements
* Landscaping or yard work
* Major remodeling
* Moving a load-bearing wall
* Room additions
* Fixing structural damage
Eligible Repairs and Improvements
* Roofs, gutters, and downspouts
* HVAC systems (heating, venting, and air condition)
* Plumbing and electrical
* Minor kitchen and bath remodels
* Flooring: carpet, tile, wood, etc.
* Interior and exterior painting
* New windows and doors
* Weather stripping and insulation
* Accessibility improvements for persons with disabilities
* Energy efficient improvements
* Stabilizing or removing lead-based paint
* Decks, patios, porches
* Septic or well sytems
* New kitchen appliances
How is this going to help you? The buyer?
* The buyer can do the updating without using their own money
* The buyer saves time by using professional realtors, mortgage consultant, and contractors
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