The FHA mortgage program, more specifically, the FHA 203k rehab loan, is one of the most sought after solutions Dallas, TX first time homebuyers are turning to these days for low money down.
With the collapse of the Subprime mortgage offerings, many would-be home purchasers/refinancers are unsure as to what their financing options are.
Over the past few months, many Texas homebuyers/refinancers have found that the government backed FHA mortgage is the answer.
Although not hit as hard as other states, Texas has had it’s fair share of foreclosed and abandoned properties. For many families, the promise of owning an affordable home is a very likely reality.
With only a 3.5% required down-payment and historically low rates, Dallas foreclosed home deals seem to conjure up the perfect storm for a strong buyer’s market.
So with your Pre-Approval for an FHA 203k loan and your down-payment money in the bank, you start to look at foreclosed homes. Some of them are run down, some are in good shape, but need some updating and some are just right and move in ready.
Can you guess where the bargains are found? Yes, the homes that need work are the ones that the banks are willing to let go for much less.
Enter the FHA Streamlined K Limited Repair Program, otherwise known as the 203K.
This is a standard FHA loan that allows for the financing of less extensive, but necessary rehabilitation. It is a standard fixed rate home mortgage with a trick up its sleeve. This type of home loan can be used to pay for things such as:
- Repair/Replacement of roofs, gutters and downspouts
- Repair/Replacement/upgrade of existing HVAC systems
- Repair/Replacement/upgrade of plumbing and electrical systems
- Repair/Replacement of flooring
- Minor remodeling, such as kitchens, which does not involve structural repairs
- Painting, both exterior and interior
- Weatherization, including storm windows and doors, insulation, weather stripping, etc.
- Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
- Accessibility improvements for persons with disabilities
- Lead-based paint stabilization or abatement of lead-based paint hazards
- Repair/replace/add exterior decks, patios, porches
- Basement finishing and remodeling, which does not involve structural repairs
- Basement waterproofing
- Window and door replacements and exterior wall re-siding
- Septic system and/or well repair or replacement
In short, anything that is not structural and can fit within the maximum cost of $35,000 (on top of your purchase or refinanced loan) to rehabilitate to personal and FHA financing standards.
The best part about 203K streamline is that it is all in one loan under one low fixed rate and all interest is tax deductible. No credit card debt or depletion of personal funds to turn a rehab house into a wonderful home that you and your family can enjoy for years. So if you are searching Dallas foreclosures arm yourself with the 203k streamline or full product.
Since many Texas Loan Officers do not have access to or do not understand this product, it is important to work with a knowledgeable Loan Officer that can set up and close your 203K loan for a successful and happy home loan and rehab.
Call me if you have questions about this amazing loan works or if you would like to start a 203K rehab refinance or purchase of your own.