Financing for Rehabs, REO’s, Foreclosures, and Fixer Uppers in Galloway Township, Atlantic County. FHA 203(k)

This post is about the FHA 203(k) Streamline program, a program that has been around a long time but deserves to be revisited in this market. This loan is not for everybody but in certain situations it can make the purchase or sale of a home possible when traditional financing will not allow it.

What is it?

 It is a Rehab Loan
 It is NOT a Construction Loan
 Can be Purchase or Refinance
 Used When Appraisal has “Cost to Cure”
 Can be Used for Elective Renovation

This loan, as with regular FHA loans, is for a purchase or refinance of a primary residence only. This is not a product for investors or a product that should be used with the intention to “flip” the property.

What are the eligible property types?

 1-4 Units
 Condos (interior only)
 Manufactured Homes
 Mixed Use Properties
 Existing Homes Complete For Over 1 Year

What are the eligible improvements that can be made with this loan?

 Health and Safety Repairs
 Corrections of Code Violations
 Repairs Necessary to meet HUD Requirements
 Smoke Detectors
 Installation or Repair of Well and Septic
 New Free Standing Appliances
 Roofs, Gutters and Downspouts
 HVAC Systems
 Plumbing and Electrical Systems
 Flooring
 Kitchen Remodel (Nothing Structural)
 Interior and Exterior Painting
 Weatherization (Doors, Windows, Insulation, etc.)
 Handicapped Access
 Lead Based Paint Stabilization or Abatement
 Exterior Decks, Patios, or Porches
 Basement Waterproofing
 Basement Finishing/Remodel (Nothing Structural)

This is obviously just an overview of what this product has to offer. The key to a successful process and closing is working with a knowledgeable Loan Officer who will walk you or your client step by step through the process. This product is has many more variables than the traditional loan programs and therefore needs to be handled properly throughout the process to ensure everything goes smoothly.

For more information vist the HUD website at HUD or give me a call at 609-618-9939.

Brian