FHA 203(K) Mortgage Loan

Made available to certain lenders by the U.S. Department of Housing and Urban Development (HUD), the FHA 203(k) 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) loan is available to borrowers of all income levels and offers borrowers the resources to renovate a home that may be in need of repair, either the home that they currently live in, or that special fixer-upper opportunity. to homeowners who plan to occupy the house, and for homes with one to four units. These are the highlights for FHA 203K Mortgage.

FHA 203K Eligible Borrowers:

• Owner Occupants
• Purchase – Refinance
• Non- Profits
• Investors NOT allowed

Terms of FHA 203K Loans:

• 30 or 15 year fixed rates
• One year ARMS
• Assumable to a qualified buyer, with no money down

FHA offers two types of FHA 203k Rehabilitation Mortgages

FHA 203(K) Standard Mortgage, (also called “Full or “Regular”)

The FHA standard 203(k) program is HUD’s primary program for the rehabilitation and repair of single family properties. FHA 203(k) Mortgage enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

FHA 203(k) program fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, FHA 203(k) program offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. FHA 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

FHA 203k Streamline Rehabilitation Mortgage

The “Streamline”(K) Limited Repair Program permits homebuyers to finance up to 35,000 into their mortgage to improve or upgrade their home before move-in. This is hte fast and easy way to utilize this program. With this loan, homebuyers or homeowners can quickly and easily tap into cash to pay for property repairs or improvements.

The maximum mortgage amount allowed for a FHA Standard 203k Rehabilitation program is based on whichever is less:

• The as-is value of the property plus the costs of repair and rehabilitation
• or 110% of the projected value of the renovated property.

Difference between the FHA 203(K) Streamline and FHA 203(K) Standard Program

The streamline 203(K) has a cap of $35000 including fees, with no minimum repair cost. It is designed as a refurbish and rehab loan for borrowers who want to finance non-structural and cosmetic repairs only. The full FHA 203(K) standard program allow for structural repairs and room additions as well.

Our Certified Mortgage Planner Specialists will guide you through each stage of the process and provide you with expert advice along the way. Whether you are Buying a home or Refinancing your current mortgage we are committed to making the home loan process clear, informative, and simple. At Guardian Mortgage, we understand that buying a home is equally big decision as refinancing your current mortgage. That’s why we are committed to providing you with the information you need to make well informed decisions.

When you are ready, simply Apply Online, Request Personalized Rate Quote or call us at 703-349-1084 to speak with live person.