FHA home loans that are insured through the Federal Housing Administration (FHA) are excellent financing choices for any homeowner who would like to get a home or refinance their existing house loan. These loans have low interest rates in most cases only need down payments of 3.5 percent! FHA loan requirements are usually simple, therefore existing and prospective homeowners are more apt to be eligible  for these loans than other types of loans.  A FHA 203K Mortgage can be a great way to buy a home that needs repairs or even refinance home improvements on your existing home.

There is an exception to the FHA requiring a 3.5% down payment.  The exception is the special “HUD $100 Down Payment Incentive.”  You can buy a HUD foreclosed home with only a $100 down payment.  You can get more information on this special HUD $100 Down Payment Incentive Program by clicking on the links at the end of this article.

FHA 203K Mortgage Rehabilitation Mortgage Insurance Program

The FHA provides a special mortgage program to aid homeowners who need to make enhancements or repairs on their home, but don’t have the money to do so. These loans are known as FHA 203K Mortgages and may be used for both a purchase or even a refinance. There are 2 types of loans in this program, one loan is for repairs that cost less than $30,000 and the other mortgage loan is for repairs that cost above $30,000.

A Streamline FHA 203K Mortgage option can also be available to homeowners that are considering doing non-structural repairs or upgrades. This particular mortgage needs a smaller amount documentation and can be less costly. It enables a homeowner to fund up to an additional $35,000 into their house loan in order to make improvements towards the home. An FHA home inspector or appraiser can determine home repairs that should be made.

How The FHA 203K Mortgage May Be Used

Despite the fact that there are a few constraints on what the mortgage may be used for, there are many refurbishments and home repairs that the mortgage may cover. Usually, these include modernization, getting rid of safety or health dangers, making a home more accessible for those that have disabilities, or making a home more energy efficient. More specifically, the mortgage loan may be used for roofing, plumbing, flooring, painting, and small remodeling plus much more.

FHA 203K Mortgage Loan Requirements

There are certain requirements along with this kind of financing. Homeowners used to need to spend at the very least $5000 on their home repairs to become eligible, but that requirement has been removed. Homeowners need to get cost estimations from a licensed as well as insured contractor(s) in advance of signing the sales contract. The full cost of the mortgage loan, such as repairs, need to stay within the FHA loan limitations for the county in that the home is located.

This FHA 203K Mortgage can’t be used to flip houses, as well as the homeowner must use the mortgage on the home in which they resides. The work being done on the home need to commence within 30 days from the loan closing. All work need to be concluded within six months to conform to the loan requirements.

If a homeowner really wants to make repairs to their home and needs additional financing, this kind of financing may be the smartest choice. Most of the same eligibility standards used by standard FHA home loans apply to the FHA 203K Mortgage. The majority of loan companies require that the borrower have a credit score that is at least 620 to be eligible. To qualify for the loan, specific energy efficiency standards, in addition to certain structural standards, have to be fulfilled.

The FHA 203K Mortgage could possibly be an excellent answer for homeowners who desire a better approach to finance home repairs and improvements while not using up their savings.

Click Here To Get More Information On The HUD $100 Down Payment Incentive!

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FHA 203K Mortgage FHA 203K Loan Requirements, FHA 203K Mortgage, fha 203k mortgages, fha loan requirements

The FHA 203K Mortgage is a kind of financing which is insured through the Federal Housing Administration. This is a completely unique form of financing that enables homeowners to get both a purchase mortgage loan and also rehab financing within the same transaction.

Prior to this kind of transcendent mortgage loan program, a homeowner were required to get an initial, short-term loan to buy the home plus a different rehabilitation home loan to make any needed repairs. Only after the repairs were complete could the homeowner obtain permanent financing for their recently improved home.

One of the best deals currently offered by FHA and HUD is the HUD $100 Down Payment Incentive Program.  You can buy a HUD foreclosed home with only $100 down payment and if you want to you can still use the FHA 203K Mortgage to rehab it if needed.  You can get more information by clicking HUD $100 Down Payment Incentive Program and learn how to buy HUD Homes with only a $100 down payment.

FHA 203K Mortgage: Exactly how does it work?

The FHA 203K Mortgage Loan was made to streamline the process of purchasing a home in need of repairs. To be able to provide funds for the repairs, the mortgage loan amount will be based upon an predicted future appraised worth that will take into account the amount of value the finished repairs will probably increase the current value. As much as $35,000 above the purchase price of the home can be financed into the mortgage to pay for the expense of repairs.

The contractors selected by the buyer to complete the repairs will collect the amount of money for their work in two draws. One draw is made for 50% of the work and it is disbursed at the start of the repairs while the remaining 50% is going to be disbursed after the work is finished.

The repairs have to start within thirty days from the closing of the loan and need to be concluded within six months. The total amount paid out to the contractor(s) have to be decided before the mortgage loan closes by having written bids on materials and labor expenses. The homeowner can perform the work themself provided he is a licensed and bonded contractor.

Just what sorts of repairs will the FHA 203K Mortgage cover?

A number of the repairs eligible to be done with the money from an FHA 203k Mortgage Loan include: roof replacement, electrical or plumbing related work, kitchen improvement, accessibility renovations, appliance acquisitions, as well as painting.

Even though numerous cosmetic renovations are permitted, luxurious things and improvements usually are not allowed. Additionally, any funds necessary to repair to any detached buildings, such as sheds, swimming pools, and gazebos, will not be a part of this loan amount.

FHA 203K Guidelines:

The FHA 203K Mortgage program has the identical types of eligibility requirements which exist on any FHA home loan.  A homeowner have to qualify based on both credit and earnings to become eligible and also the home have to be FHA approved.

In general, the monthly mortgage payment can’t surpass 41% of the borrower’s monthly earnings many loan providers require a minimum of a 620 credit score.

Homes which are eligible include: FHA-approved condos, 1-4 unit homes, and planned urban development homes (PUDs). The building of the house will need to have been finished at minimum one year prior to financing in order for the home to be eligible.

The FHA 203K Mortgage program can be quite a excellent tool for any homeowner seeking to refurbish or repair their home. In a real estate market which has seen foreclosures achieve record highs, the FHA 203K Mortgage loan can not only give prospective home owners with much more possibilities to buy a home, but also can help rebuild the housing industry by facilitating the rehabilitation of foreclosed homes.

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There are many types of FHA Home Loans and you can get many types of homes with them. Getting a home loan can come about for many reasons.  Most of the reasons to get a home loan, or even a FHA Home Loan include one or more of the following. Often if you are a first time home-buyer you may need a home loan.  But if you are looking to buy a manufactured home you will have a hard time finding a loan program to finance it.  There is a good loan program for financing the purchase of manufactured homes and it is the FHA Manufactured Home Loan.

If you do not have a lot of money to put down on a manufactured home, you can often qualify for a FHA Manufactured Home Loan.  The current FHA down payment amount is just 3.5% of the purchase price.  While down payment for home loans is 20% or more.

It is very difficult to find a lender that will do a traditional conventional loan on a manufactured home.  One of the reasons is that it much easier to move a manufactured home.  The manufactured home will have a steel beam down the middle of the home making it easier to relocate.  This increases the risk for the lender.

If you are a new home buyer and you are looking at a manufactured home, you will want to keep your monthly payments as low as possible.  This is the reason manufactured homes are popular, they are less expensive to buy.  Now you have to find a loan program to finance the purchase. You may want to apply for a FHA Manufactured Home Loan.  

If you do not have the best or perfect credit, or are worried about even qualifying for a home loan, chances are now you can qualify for a FHA Manufactured Home Loan now. With the economy as it is now, although it is improving, some manufactured new home owners and buyers may often worry about what will happen to them or their homes if they fall behind on their payments on their homes.

With a FHA Manufactured Home Loan many of the worries about falling behind on their payments, qualifying for a loan if they do not have the best credit, or any of the usual concerns for first time home buyers are gone. More and more people qualify for FHA Home Loans each day. Getting a home loan for a manufactured home is much easier, faster, and often you qualify much easier and faster with more protection than with other home loans.

You will find that with FHA Home Loans there are lower rates. If you have less than perfect credit you can also still get a FHA loan. There are much more protections for your home with an FHA Manufactured Home Loan than you will find with other home loans.

There are also many types of FHA Manufactured Home Loans as well. You can get a fixed rate loan, adjustable rate home loans, and you can even get a FHA 203K Mortgage to purchase a rehab home. This means that you have found a house you like, but it needs fixing up or repairs. There are even special FHA Loans for these types of homes as well.

With lower down payment and lower credit requirements, the FHA Manufactured Home Loan is not only the best loan program but it may be your only choice to finance your manufactured home purchase.  It is great loan program and you should contact a FHA lender now to get more information.

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With a record number of homes being foreclosed all across the country, you may have investigated purchasing one. But since most of them need some fixing up, you may have thought against it, thinking the savings on the house would be more than eaten up in the cost of fixing it up. Or perhaps you want to keep your home, but it requires a lot of repair. The Federal Housing Administration (FHA) offers the FHA 203K Mortgage that can be used for both of these purposes.

This type of mortgage not only prevents neighborhoods from becoming blighted by a large number of foreclosures, it can also be used to help save the environment by altering homes so that they can become more energy efficient. Some of the green additions you can make include windows, furnaces, appliances, floors, landscaping, solar panels and insulation. Certain repairs can be made by the borrowers themselves and not a contractor.

Although not a loan from the government, a FHA loan is guaranteed by the government.

FHA 203K Mortgages have existed for decades, and have regained popularity in the wake of the sub-prime loan meltdown. Because some banks and mortgagors are struggling to survive due to unprecedented loan defaults, conventional loans are now requiring a 20 to 30 percent down payment. First-time home buyers are hard pressed to come up with this large amount of money.

However, a FHA 203K Mortgage only requires 3.5 percent down. These loans also offer more favorable terms and easier qualification than do conventional loans. If you have at least a good credit rating, even a prior bankruptcy, you could qualify for a FHA loan.

If you want to purchase a home, the amount of money you can borrow will be based on the comparable price of homes in the area. The amount of the loan will be the lesser of its present value plus the cost of rehabilitation, or 110 percent of the appraised value after rehabilitation.

There are a few restrictions on these loans. The homes that qualify for a FHA 203K Mortgage need to be at least one year old and the cost of the needed repairs used be at least $5,000, but that no longer apply. There are additional fees associated with this loan, including a supplemental origination fee, fees to cover the rehabilitation plan documents and appraisal fees.

The time to close can take as many as 60 days, but usually takes from 30 to 45 days.

So, if you see a foreclosed home or maybe a HUD Homes for sale don’t let the necessary repairs stand in your way of getting a bargain.  Talk to your lender about a FHA 203K Mortgage and buy the home of your dreams!

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FHA 203K Mortgage FHA 203K Mortgage, fha 203k mortgages, fha loan, hud homes for sale

What to Look For In A Home Improvement Loan

Home improvement loans are a particular type of loan where the borrowed funds are used to make additions, improvements or repairs to your home or to the property on which the home is built. Using a home improvement loan in order to make modifications and enhancements to you house will result in an increase in the property value and will allow for a higher selling price in the event that you decide to sell your home. A home improvement loan can be either secured or unsecured, but is generally secured by the equity you already have in your home. In other words, the home itself is used as collateral to secure the loan.

Where to Get One

Home improvement loans are available through various sources including banks, credit unions, finance companies and other financial lending institutions. Usually, the first place to make your loan inquiries will be with your current lender. You will often obtain the best interest rate from a lender where you have already established a relationship. If what they have to offer is not appealing, there are many reputable financial lending companies who can provide a home improvement loan via the Internet. A quick search will provide many loan options.

Government Assistance

There are many state and federal government agencies that will provide a home improvement loan. These agencies usually have very strict criteria that must be met but they are definitely worth investigating. The US Department of Housing and Urban Development (HUD) website provides a wealth of information on the subject.

The Federal Housing Administration (FHA) is part of HUD and administers various single family mortgage insurance programs that are operated through FHA-approved lenders. The FHA approved lender will submit an application to have the property appraised and have the buyer’s credit approved. These lenders will then provide the loans which are insured by HUD. HUD does not make the loan itself.

The Section 203(k) program is the HUD program for the repair and rehabilitation of single family properties. Many lenders will partner with state and local housing authorities to provided Section 203(k) home improvement loans to assist borrowers. The place to start looking at this option is with a FHA approved lender or with the Homeownership Center in your local area. HUD also publish a helpful brochure called "Own a Home and Home Improvements"

What Can You Use the Funds For

While funds from a home improvement loan are frequently used to conduct major repairs such as installing a new roof or replacing outdated plumbing, many people utilize the funds for remodeling a kitchen or bathroom, landscaping a yard, adding a room or a garage or even adding an entire second floor to a single story home.

Getting the Most From Your Loan

Before committing to the loan and signing the documents ensure that you are receiving the best possible terms and interest rate. In addition, if you take out a $10,000 loan and the renovations or repairs you make to your home increases its value by, say, $15,000, then your home improvement loan can be considered an extremely sound investment.

Alison Stevens is an online author and maintains The Home Improvement Website to assist homeowners with home improvement tips and information.

By Alison Stevens Published: 5/30/2007

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FHA 203K Mortgage FHA 203K Mortgage

You may have some home renovations to do  but you are having trouble finding a loan to do the renovations. A Streamline 203K Loan may solve your problems.

Streamline 203K Loan Program is insured by FHA and can be used for repairs or renovations between $5,000 and $35,000.  But what renovations can be used in this 203K Mortgage?

The author of this article will list many types of repairs that will qualify for the Streamline 203K.

How Can I Use a FHA 203k Renovation Loan?

In a recent article I showed you how quick and easy the FHA 203K Loan process was and how it can benefit you and your family in their search for the perfect home. We talked about how you can purchase or refinance and get the money to buy or to pay off your current mortgage alongl with an escrow account for repairs all in one simple loan process at great FHA rates.

Now I want to outline some of the common and not so common uses of FHA 203K Loans; from making a property handicapped-accessible to waterproofing a home to simply upgrading appiances in poor condition, the FHA 203K loan program gets the job done. So, how can you use the program?

1. New Freestanding Appliances

2. Complete Bathroom Remodel

3. Adding a New Master Bathroom

4. Upgrading Heating & Cooling Systems

5. Well & Septic

6. New Hardiplank Siding

7. Fresh Paint Inside or Out

8. Attic Build-Outs

9. Waterproofing the Basement

10. Finishing the Basement

11. Making the House Handicapped Accessible

12. Complete & Total Renovation

13. Adding a 2nd Floor

14. Adding a Bedroom

15. Moving a Historic House to New Location

16. New Deck & Outdoor Kitchen Area

17. Repairing Water Damage

18. New Hardwood Flooring or New Carpet

19. New Lighting Fixtures

20. New Windows & Doors

21. Upgrading Plumbing & Electrical Systems

22. New Fixtures for Tubs, Bathrooms and Kitchens

23. Opening Up a Floorplan

24. New Kitchen Counters

25. Vaulting Your Ceilings

26. Making Your House More Energy Efficient

27. Going Green with Solar Panels

28. Getting a Condo Ready for Your New College Student

29. Much, Much More

There are thousands of reason why people need to renovate and I couldn’t possibly list them all here. FHA allows for nearly anything you can think of so long as the value of your renovation supports the new loan amount. I am getting more and more requests to help provide financing so green conscience homeowners can add new energy efficient features, including solar panels, to their homes and save on rapidly rising energy prices.

Not to mention FHA will allow your debt to income ratios to be higher if you include energy efficient improvements to your renovation. So whether your renovation idea made the list or not, it is always good to check into FHA 203K Renovation loans before you finance your next home improvement or new home purchase.

Author: Jonathan Blackwell Jonathan Blackwell FHA 203K Specialist Hometown Lenders jonathan.blackwell@hometownlendersllc.com http://www.203KLoan.net http://www.atlantahomeloans.net 404-551-3845

Article Source: http://EzineArticles.com/?expert=Jonathan_Blackwell

Comments:  As you can see you can use the Streamline 203K for many different types or uses.  The Streamline 203K is a very useless form of financing your home renovation projects.

You can read another great article on the basics of the FHA 203K Mortgage here.

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 I bet you will have trouble getting a home improvement loan in today’s market without a lot of hassle.  But there is a home improvement loan program that is certainly easier to get than any other.  It is the FHA Home Improvement Loan.  It is called the FHA 203K Streamline Loan and it can be used improve to buy a home that needs repairs with rehab costs of less than $35,000.

You can also refinance your current mortgage and use the loan proceeds to improve the home you are currently living in.  The FHA Home Improvement Loan can be your answer to improving your home in one easy step.

The author of this article will discuss the basics of The FHA Home Improvement Loan.

FHA Refinancing – Need a Home Improvement Loan?

You hear it almost everyday that getting a mortgage is getting harder. One of the hardest loans to get right now is a construction or home improvement loan. Once again FHA is helping borrowers with their home improvement needs.

FHA has a program call 203(k) streamline. This program can be used for refinancing a current mortgage, or to purchase a home and make upgrades or repairs to the property all under one single loan. Unlike conventional mortgages it is not re-qualified, as it is only underwritten one time, upfront. There is no minimum amount for the repair cost; however the maximum is $35,000.

The FHA 203(k) offers both fixed and adjustable rate options, and the interest is the same as a standard FHA loan. On a purchase the appraisal is completed as "subject to" meaning after the repairs and or improvements are completed. On a refinance two appraisals are required. The first appraisal will reflect the current as is value. The second appraisal will reflect the subject to completion value.

Eligible properties include one to four unit residences, including HUD REO properties. Manufactured homes, and spot approval for Condos are also allowed. The property must be 100% complete – no partially built homes.

Contractors and repair criteria

All repairs/work must be completed within three months of the closing date. Repairs must be completed by a licensed contractor unless the borrower can demonstrate the required expertise. The contractor making the repairs does not have to be a licensed general contractor; however, he or she must provide a resume along with two references.
Self Help (borrowers completing work)

The borrower is required to have the necessary expertise and experience to complete the work in a satisfactory manner (ie: borrower is a licensed plumber and will complete that portion of the work). The cost of labor is included in the repair / rehabilitation cost in case the borrower is unable to complete the work and a contractor needs to be hired. The borrower must provide written estimates of the repair / rehabilitation cost as well as written estimates from the suppliers of the materials.

Author: D Clark See more FHA loans DClark Sr. Loan Officer Cole Realty and Lending, Inc http://www.midwestfhaloans.com

Article Source: http://EzineArticles.com/?expert=D_Clark

Comments:  The FHA Home Improvement Loan is for home improvements, not for a complete rehab of the property.  You read another great article on FHA 203K Mortgage here.

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Comments:  This article is about FHA 203K Mortgage and is mostly for loan officers, but as a homebuyer or owner you will get a good idea how you will qualify and the basics of a FHA 203K Mortgage.

The author discusses the  FHA 203K Mortgage and also the FHA 203K Streamline Mortgage.  Most homebuyers and owners will be more interested in the 203K Streamline because it is a much easier process.

Fha Streamline 203k – The Basics

One of the most exciting opportunities today for loan officers and real estate agents alike is the opportunity to sell off the glut of foreclosed homes on the market.

A big problem with these potential deals is that most people who are losing their home because they can’t make the payments usually lack the money for routine maintenance as well. Once foreclosed upon, those homes hit the market needing some serious sprucing up.

In 2005 HUD came up with a new FHA insured mortgage program they called the "Streamline (K)" Limited Repair Program. The Streamline 203k loan permits homebuyers and those refinancing to borrow up to an additional $35,000 into their mortgage to improve or upgrade their home.

Most loan officers go looking for a special set of guidelines for Streamline 203k loans. There are some specialized guidelines and loan to value rules, but the key thing to remember is that all standard FHA underwriting guides apply just the same way they for any regular FHA loans when it comes to credit, income and asset documentation. This includes decisions reached by both automated underwriting systems and manual underwrites.

Here are the general criteria for a deal to qualify for Streamline 203k:

* May be used for purchase or refinance of one-to-four (single family) residences, including HUD REO properties

* May be either fixed or adjustable rate mortgages

* Combines the funds to purchase or refinance (pay off existing liens) along with the funds needed to repair/rehabilitate the property.
Repairs are completed after closing. (NOTE: A 203K cannot be a Cash-Out Refinance. All money must go to repairs.)

* One closing, with rehabilitation funds escrowed and disbursed as the work is satisfactorily completed

* Can be used to update homes, correct health and safety issues, pay for higher cost items such as a roof, etc.

* Property value must be sufficient to purchase/refinance and complete the rehabilitation

* Property must be 100% complete or equivalent document and must be at least one (1) year old.
(EXCEPTION: Presidentially declared disaster areas for one (1) year after the disaster)

* Borrower and credit eligibility same as for other programs (No Investors, including REO sales)

Here are a few additional aspects of the Streamline 203k:

* No minimum borrowing threshold, but there is a maximum of $35,000, which most lender require to include at least a 10% contingency fund

* Appraisal is completed as "Subject To Repairs"

* A minimum 10% Contingency Fund is required

* Unlike regular 203k’s no consultant and plan is required

* No general contractor is required

* The lender is responsible for ensuring that the repair cost is reasonable and customary for the area in which the property is located

* No preparation of architectural exhibits (as required in HUD Handbook 4240.4 REV-2, Paragraph 3 – 2) is necessary

* Streamline 203k helps address the repair issues that are often delaying or preventing sales and refinancing

Obviously there will be some differences between regular FHA and streamline 203k when the time comes to calculate the maximum mortgage amount.

Here is how the maximum Streamline 203k mortgage amount is calculated:

The mortgage amount can be the lesser of:

A. The maximum (statutory) mortgage limit for area

B. The "As is" value (usually the purchase price or outstanding debt in case of a refinance transaction) plus cost of rehabilitation

C. 110% of "After Improved" value; Condominiums are limited to 100% of "After Improved" value.

D. If the borrower has owned the property for less than one year, the acquisition cost is the maximum.

Only a handful of lenders are accepting loans under the full FHA 203k guidelines, but many FHA lenders are offering the streamline version.

By: Carl Pruitt

Article Directory: http://www.articledashboard.com

For FHA training for loan officers go to fhaloanadvice.com

Carl Pruitt has 23 years experience in the mortgage and real estate industries as an FHA mortgage specialist.

Comments:  The author said there is no minimum borrowing threshold for the FHA 203K Streamline Mortgage, there is a $5,000 minimum treshold with the maximum $35,000.

The FHA 203K Mortgage is an excellent loan program if you are considering purchasing a house that needs repairs but don’t have the cash to make necessary repairs.  The FHA 203K Mortgage Streamline Program is easier than trying to get a conventional rehab loan.

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