{"id":8568,"date":"2009-10-13T15:10:18","date_gmt":"2009-10-13T21:10:18","guid":{"rendered":"http:\/\/www.myfhamortgageblog.com\/?p=8568"},"modified":"2009-10-13T15:10:18","modified_gmt":"2009-10-13T21:10:18","slug":"the-fha-203k-streamline-rehab-loan-in-texas","status":"publish","type":"post","link":"https:\/\/dev203k.orbitwebx.com\/dev203k\/the-fha-203k-streamline-rehab-loan-in-texas\/","title":{"rendered":"The FHA 203K Streamline Rehab Loan"},"content":{"rendered":"

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If you’ve been passing up buying a home in Texas\u00a0because it requires cosmetic repairs and you are lacking\u00a0the funds for repairs and\/or upgrades FHA has a program for you.\u00a0 Not to be confused with FHA’s full 203K program<\/a>, a Streamlined 203K loan eliminates much of the paperwork and simplifies the process to obtain rehab funds.<\/p>\n

How Does a Streamlined 203K Loan Work?<\/strong><\/p>\n

It used to be that you bought a home and then applied for a home equity loan to fix it up, resulting in two loans.\u00a0\u00a0But that’s no longer required now that the FHA Streamline 203K is available.\u00a0 \u00a0A Streamlined 203K loan is figured into the original loan balance, resulting in one loan.\u00a0 It is a fixed-rate mortgage loan.\u00a0 The mortgage balance can exceed the purchase price of the property. Borrowers are not required to hire professional consultants, licensed engineers or architects. The appraiser or home inspector can put together a list of recommended repairs \/ improvements<\/a>.<\/p>\n

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The Process of the Streamlined 203k<\/strong><\/p>\n

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Find the home you\u2019ll want to purchase and determine what improvements need to be made to the property.<\/p>\n

The\u00a0purchase contract\u00a0<\/a>offer is written the same as any other, accept you\u2019ll want to make sure that there is language stating the purchase is contingent upon borrower acquiring an FHA 203k Loan.<\/p>\n

In order to complete the financing of the improvements, you will need to meet with a contractor to determine what kind of work you are planning and how much it will cost.<\/p>\n

The contractor will give you a bid, which you\u2019ll need to pass on to the lender.<\/p>\n

The lender will order an appraisal to determine what the value of the house will be once all of this work is completed.<\/p>\n

Keep in mind, you\u2019ll also need to be qualified for the full loan amount which is based on the purchase price plus the additional cost of repairs.<\/p>\n

Once the loan is approved, you will go to closing like you normally would.<\/p>\n

The amount that will be needed to do all of these repairs or improvements will be placed into an escrow account held by the lender.<\/p>\n

As the work is being completed, there will be draws from the account to pay the contractor.<\/p>\n

Type of work for Streamlined 203(k):<\/strong><\/p>\n