Many existing homeowners have decided to stay put rather than sell in this market. Other potential homeowners have found a home with a lot of potential that needs some work to make it their dream home. Unless you have lots of equity in your home, getting a second mortgage for remodeling is difficult if not impossible. The solution is a FHA 203k Streamline mortgage.
This mortgage will provide you with up to $35,000 for remodeling. The streamline program is for rehab work only. It is not meant for tearing out walls, popping the top, etc. One of the many benefits of this program is that the value, for qualification purposes, is considered “as is” after the work is completed. The homeowner gets a bid for the work for the improvements they want done and shows it to a specially trained 203k appraiser. This helps to protect the borrower to make sure the money they are pumping into the house is cost effective.
One huge benefit of this program is that it may potentially help homeowners with high interest rate loans who could not refinance because of loan to value problems. As always, talk to a mortgage professional to make sure the numbers make sense. Glad to help with any scenarios you have in mind. Of course, no cost or obligation.
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