Here's some additional info concerning the Streamline 203K:
- Buyer must qualify as they would for a typical FHA 203b loan
- Like Up Front Mortgage Insurance (UFMIP) the cost to do the repair/renovations are rolled on top of the loan and the buyer must qualify for the new total loan amount.
- Interest rates for 203k are higher than the standard FHA 203b.
- Loan limit is up to 35K.
- PA has to state that the buyer is seeking a 203k, and that the contract is contingent on lender approval.
- Estimation of repairs/updates has to be submitted by a licensed contractor approved by the lender.
- Contractor has to begin repairs within 30 days of the close and must finish within 30 days of the estimated time to complete the work.
- Upon completion of work, the appraiser that previously inspected the home comes back out to reinspect the completed work for FHA compliance.
- If not already occupying property, buyer then takes full possession of home and moves in.
* Roofs, gutters and downspouts
* HVAC systems (heating, venting and air conditioning)
* Plumbing and electrical
* Minor kitchen and bath remodels
* Flooring: carpet, tile, wood, etc.
* Interior and exterior painting
* New windows and doors
* Weather stripping & insulation
* Improvements for persons with disabilities
* Energy efficient improvements
* Stabilizing or removing lead-based paint
* Decks, patios, porches
* Basement completion and waterproofing
* Septic or well systems
* Purchase of new kitchen appliances
* Purchase of washer and/or dryer
* Landscaping or yard work
* Major remodeling
* Moving a load-bearing wall
* Room additions or add-ons to the home
The FHA 203(k) Rehabilitation loan involves structural repairs and/or costs that exceed $35,000. Because this loan is more involved, the time from application until settlement can take as long as 45 â€“ 60 days.
For an FHA 203(k) Streamline Rehabilitation loan, the costs can not exceed $35,000, and there can be no structural repairs. Because this loan is less involved, the time from application until settlement can take as long as 30 â€“ 45 days.
Mortgage rates for FHA 203(k) loans tend to be a little higher than regular FHA loans. How much higher will depend on the lender you are working with.
Before the house is appraised, a work list of items to be completed along with estimated costs of repairs must be given to the appraiser. This is so the appraiser can prepare an â€œas isâ€ appraisal as well as an appraisal for after the work is completed. Your final mortgage can not exceed 100% of the final appraised value, and must stay within the limits for the county in which the home is located.
As for fees, thereâ€™s an added inspection fee for the Streamline Rehab loan, where as the regular Rehab loan involves a consultant that must be used to facilitate the process. Thereâ€™s also several inspections that must be done over the course of work to be done. The inspections must be done before the contractor can make draws for work performed.
If the house in habitable, you can live in the house while repairs are being done. If not, you must live elsewhere until the work is completed. If you do have to live elsewhere, you can roll up to 6 months of mortgage payments into the loan.
Sometimes you can live in the house during renovations but it depends on if the items being completed are are safety or health concerns. For example, you cannot live in the house if the water is not hooked up as that would be a safety hazard.
I do have a Wells contact in Miami if you are interested, shoot me an email and I will put you in touch with him...
In order to have an appraisa done the appraiser will need either detailed write upd the the work to be done from the contractors or the consultants summary report so they can figure the value of the upgrades/repairs into their report.
You will be able to live in the property as long as there are no safetly issues associated with doing so. good luck with your new home.