If you are thinking about buying a Bank Owned, HUD, or short sale property that needs repair, FHA’s 203(K) rehabilitation loan or it’s simplified alternative, the Streamlined(k) may be a good option for you. FHA’s simplified Streamlined(k) program for small-scale repairs is the perfect option for most HUD REO sales. For the major repairs & more complicated renovation plans, the Standard 203(K) program is the option.
HUD Homes, like the majority of property re-sales, require some level of repair. FHA’s Streamlined (k) program allows the buyer to finance both the purchase and the cost of minor repairs and/or upgrades through a single mortgage. While there is no cap on repairs for the Standard 203(K), the Streamlined (k) allows for repairs from $1 up to $35,000.
For the Streamlined(k) option, homebuyers identify their repair needs, which may include: new carpet; interior and exterior paint; new appliances; kitchen or bathroom remodel; exterior landscaping and other minor improvements at the time of mortgage application.
The Streamlined (k) option is a relatively new program, but the 203k has been around for a while. This program is not reserved for just First-Time Homebuyers, but it is an FHA program and requires the owner occupy the home. First Time Homebuyers may also use their $8000 tax credit for this loan.
In Tampa Bay contact Team Sumberg for additional information. info@TeamSumberg.com (866) 323-3981
