New loan helps buyers make improvements to their new home

I thought that this was an interesting loan product that everyone might like to hear about! With all of the city homes that are for sale, this is a flexible product that can help to make necessary improvements. This information is courtesy of Wendy Robison at Providence Mortgage Company:

The FHA Streamline 203k is a loan designed for borrowers to finance the cost of minor repairs/rehab work for a property at the time of purchase. Before the loan is closed the borrower will obtain estimates from contractors/retailers for items and work that needs to be done. The lender will add the cost of these estimates to the price of the home and hold the money for the repairs in escrow to be drawn on as the work is done. This feature of the loan works much like a construction loan.

FHA Streamline 203K highlights:
Designed for borrowers who wish to purchase a home that needs minor rehabilitation work

Maximum $35,000 in repairs/rehab - no minimum

Choose your own contractor

Mortgage company approves the proposed work plan, contractor and cost estimates and works directly with borrower and contractor throughout draw process.

This program can be used for the following repair/rehab items:

Repair/Replacement roofs, gutters and downspouts
Repair/Replacement/upgrade of existing HVAC systems
Repair/Replacement/upgrade of plumbing and electrical systems
Repair/Replacement of existing flooring
Minor remodeling, such as kitchens, which does not involve structural repairs
Exterior and interior painting
Weatherization: including storm windows and doors, insulation, weather stripping, etc.
Appliances including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens.
Improvement for accessibility fo rpersons with disabilities
Lead based paint stabilization or abatement
Repair/replace/add exterior decks, patios, porches
Basement finishing and remodeling, which does not involve structural repiars
Basement waterproofing
Window and door replacements and exterior wall residing
Septic systems and/or well repair or replacement

If you have thoughts or questions about this product, please call our office at 517-782-2996 or just simply click on the "comments" link below this article and I will get back with you right away!