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More Loan Products, More Choices, More Loan Approvals.
•Fannie Mae's HomePath Purchase and
Renovation Loans – A special program
designed specifically by Fannie Mae to offer
foreclosed homes directly to qualified buyers.
With as little 5% down, you can get a great
price on a bank-owned property.
•Fannie Mae's HomeStyle Purchase or
Refinance Renovation Loans- A program
similar to FHA's 203K with the ability to include
the rehab in the loan amount.
•203K Home Loans – With this FHA loan, you
can purchase a home and renovate it with only
one loan. It's a way to improve, update and
modernize a foreclosed or "handyman special"
home without the need to tap into your credit
card line or hard-earned savings.
•FHA Purchase Loans – We specialize in
helping first-time buyers and "move-up" buyers
get the home they want. You can qualify for an
FHA loan with as little as 3.5% down.*
•Renovation Home Loans – The Rehabman
offers several types of renovation loans to help
you purchase and renovate…all in one loan.
Great for foreclosed homes, fixer-uppers or any
home that you can imagine becoming the home
of your dreams.
FHA 203-K Purchase/Refinance Rehabilitation Home Loan
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban
Development (HUD), administers various single family mortgage insurance programs. These programs
operate through FHA-approved lending institutions which submit applications to have the property
appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the
Department insures. HUD does not make direct loans to help people buy homes.
The FHA 203k loan program is the Department's primary program for the rehabilitation and repair of single
family properties. Basically a home improvement loan. As such, it is an important tool for community and
neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary
goals of HUD, the Department believes that FHA 203k loan is an important program and they intend to
continue to strongly support the program and the lenders that participate in it.
Lenders have successfully used the FHA 203k loan program in partnership with state and local housing
agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local
government agencies, have found ways to combine the FHA 203k loan with other financial resources, such
as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several
state housing finance agencies have designed programs, specifically for use with FHA 203k loan and some
lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage
the rehabilitation processing.
HUD also believes that the FHA 203k loan program is an excellent means for lenders to demonstrate their
commitment to lending in lower income communities and to help meet their responsibilities under the
Community Reinvestment Act (CRA). HUD is committed to increasing homeownership opportunities for
families in these communities and Section 203(k) is an excellent product for use with CRA-type lending
programs.
FHA 203K Loan - How the Program Can Be Used:
This program can be used to accomplish rehabilitation and/or improvement of an existing one-to-four unit
dwelling in one of three ways:
· To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.
· To purchase a dwelling on another site, move it onto a new foundation on the mortgaged property and
rehabilitate it.
· To refinance existing indebtedness and rehabilitate a dwelling;
To purchase a dwelling and the land on which the dwelling is located and rehabilitate it, and to refinance
existing indebtedness and rehabilitate such a dwelling.
To purchase a dwelling on another site, move it onto a new foundation and rehabilitate it, the mortgage
must be a first lien on the property; however, loan proceeds for the moving of the house cannot be made
available until the unit is attached to the new foundation.
FHA Streamline 203K
203K Streamline Loan - Rehab Program Overview
The 203(k) streamline loan program offers borrowers the resources to rehabilitate a home that may
be in need of repair, either the home that they currently live in, or that special fixer-upper
opportunity, without the extra cost or details as found in the regular 203k. One single loan is used
to pay for the purchase (or refinance) and the cost of renovating the home.
Made available to certain lenders by the U.S. Department of Housing and Urban Development
(HUD), the FHA 203(k) streamline program has already provided many buyers with the funds
necessary to buy their first home, or greatly improve a current home. The FHA 203(k) streamline
loan is available to borrowers of all income levels, to homeowners who plan to occupy the house,
and for homes with one to four units.
203K Streamline Eligible Borrowers:
Owner Occupants - Purchase - Refinance
Non- Profits
Investors NOT allowed
Types of 203K Streamline Loans:
30 or 15 year fixed rates
One year ARMS
Eligible Properties:
Single family dwellings
Condominium
Townhouse
Mixed Use (Storefront)
1-4 Unit buildings- you can increase or decrease the number of units with this loan.
What improvements are eligible under the new Streamlined (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or
improvements to a home for which plans, consultants, engineers and/or architects are not
required. The Streamlined (k) program includes the discretionary improvements and/or repairs
shown below:
· 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
What items remain ineligible for the Streamlined (k) program?
Properties that require the following work items are not eligible for financing under the
Streamlined (k):
· Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
· New construction (including room additions);
· Repair of structural damage;
· Repairs requiring detailed drawings or architectural exhibits;
· Landscaping or similar site amenity improvements;
· Any repair or improvement requiring a work schedule longer than six (6) months; or
· Rehabilitation activities that require more than two (2) payments per specialized contractor
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