FHA 203k Rehab housing opportunity to the rescue of U.S. communities. Single family property solutions to help grow homeownership and revitalize neighborhoods.
HUD - FHA 203k Low Down Payment Rehab Loan Helps Improve Neighborhoods by Improving Homes
By [http://ezinearticles.com/?expert=Peter_Boyle]Peter Boyle
U.S. Housing and Urban Development (HUD), and the Federal Housing Agency (FHA), both divisions of our federal government, offer a low-down payment homeownership solution titled FHA 203k Streamline program. This is a home lending program that can be used to purchase or refinance, and rehab residential 1- 4 unit properties.
Due to the terrible decline in the U.S. economy and the housing market the last couple years, real estate inventory has increased. Many home interiors and exteriors have declined and are in need of improvements. Some houses sit vacant requiring as much as $35,000 in repairs.
Consumers need to be aware of the opportunity that awaits them. They should not pass up buying or selling a home because it needs improving. One of the great benefits of the FHA 203k rehab program is that it is only one loan for purchase or refinance, including improvements; unlike traditional rehab loans. Using a traditional loan a buyer is required to make improvements before a long-term mortgage loan is obtained. Traditional rehab loans require two loans: One loan for the property and one for improvements. Upon rehab completion, a traditional permanent mortgage is created to pay-off the property (acquisition) and repair (construction) loan.
Often these two traditional loans involve higher interest rates during their brief pay-off period.
The FHA 203k Streamline addresses this problem by offering one loan, at a long-term fixed, or adjustable rate, to finance both the property and the repairs. It allows homebuyers to buy real estate owned (REO) fixer-uppers that lenders offering traditional loan products would not repair.
This special government program has supplied current owner occupant homebuyers with funds to purchase their first home, or rehab the current home they live in. The loan is available to owner occupant home buyers of all income levels and current homeowners.
Repairs and improvements include a minimum of $5,000, and a maximum of $35,000. Some HUD - FHA 203k approved repairs include: Roofing, gutters & downspouts, septic, windows, doors, insulation, furnaces, air conditioning units, plumbing, electrical, appliances, kitchen and bath remodels, flooring, painting and energy efficient improvements. Call an FHA lender for further details or go to: hud.gov.
This is an important opportunity for consumers and communities to help our nations homeownership and give new life to our neighborhoods.
Peter Boyle
Senior Mortgage Consultant
Serving the community 17 years. http://www.peterboylehomeloans.com
[mailto:pboyle@summit-mortgage.com]pboyle@summit-mortgage.com
612-701-6816
Article Source: http://EzineArticles.com/?expert=Peter_Boyle http://EzineArticles.com/?HUD---FHA-203k-Low-Down-Payment-Rehab-Loan-Helps-Improve-Neighborhoods-by-Improving-Homes&id=1534470
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