Tina Hillmer

REALTOR

WHAT YOU NEED TO KNOW WHEN APPLYING FOR A MORTGAGE LOAN…

There are several types of home mortgages and the loan that fits your needs may depend on the house you choose.

Most buyers assume that FHA loans are all the same, and in fact most lenders only offer the FHA 203B loan. Here are a few things to consider.

Will your new home need repairs or improvements? If so, how much will that cost?

Do you want to buy a new or existing home and finance a finished basement and new appliances along with the purchase?

If you had two homes to choose from and one had everything on your list of wants but isn’t in the ideal location, the other needed to be updated but is in the ideal location…. Would you like to know that you could purchase the home in the ideal location, finance the improvements, and not make a mortgage payment for up to 6 months?

You find a home that was built 18 years ago and has been updated on the inside. However, you have concerns that it will need a new roof and the seller won’t contribute. Do you walk away? 

In all these cases the loan you need is the FHA 203K –renovation loan. How is this loan different?

Streamline: no min, for repairs; max $35K for repairs; no structural repairs/improvements; contractor is allowed up to 35% of the estimate for start up; no luxury items (pools, docks etc). Close in 45- 60 days.

Consultant: min of $5,000 in renovations; max loan amount is based on county; funds can be used for any alteration up to the loan limit; HUD consultant is required-Fees involved; up to $1500 can be used for repair of existing luxury items; Up to 6 months PITI (Principal, Interest, Taxes, and Insurance) can be financed; no funds paid to contractor at closing- paid via a predetermined draw schedule. Must have 60 days to close.

As a buyer being pre approved for the 203K loan gives more buying options in this “low inventory” market. And if you find the ideal home and don’t need the renovation loan you can easily transition over the 203B loan. 

 To find out more about these loan options give me a call, or contact

Brian Stephens @ Home Services Lending - Toll free: 877-510-4555 or mobile: 770-833-2472 (brian@brianstephens.com)