The FHA 203k Streamline Loan Made Easy in Texas!
The FHA 203ks or the FHA 203k Streamline loan is the answer for those wishing to purchase and renovate a home in Texas. Let’s talk for a moment about a home that has a great structure but just needs some light renovation. Why walk away from it when you can simply finance the cost of the new paint job or the new granite counters…just to name a few examples. Simply put the FHA 203k streamline loan eliminates much of the hassles needed to obtain its counterpart – the FHA 203k full loan.
This loan is also a great way for a seller to market their home “as is” and let their new buyer update it to their liking. Who wants to pay for repairs when they are selling a home??
Realtors – this is a way to increase your business – offer your buyers a way to purchase and renovate their new home. Best of all the work begins after the loan closes so we handle that entire process.
How Does a Streamlined 203K Loan Work?
It used to be that you bought a home and then applied for a home equity loan to fix it up, resulting in two loans. But that’s no longer required now that the FHA Streamline 203K is available. In a nutshell you and your realtor will write the contract for the FHA 203k program. You will decide how much to offer the seller which is the amount you will list in the contract – remember you are purchasing a home that needs some minor repairs so don’t overbid because it might be hard to negotiate a lower price later in the process.
Once the contract is accepted and you have had your home inspection you will then get a general contractor to bid on the work that’s to be done. From this point forward we order the appraisal based on the work you are doing and the loan moves forward as a regular purchase transaction. The work will begin after the loan closes and your general contractor will have up to 180 days to complete.
A couple of things to keep in mind:
Some popular repair/updating items under the FHA 203k streamline loan are:
If you are a current home owner, we have good news for you too. This loan is also available as a refinance. We will pay off your current lender and your new loan amount will be your existing loan plus the amount of the repairs. It’s just that simple.
There used to be some negative talk about the renovation loans but let me assure you that’s a thing of the past. My team and I work hard to ensure that your loan closes in a timely manner and that the work is completed to your liking. Call me today to find out more about how easy the fha 203k streamline loan in Texas is able to obtain and close.