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Launch of Full 203(k) Renovation Financing

Renovation Mortgage Financing Wisconsin 203(k) | Photo Credit http://boceanconstruction.com/services/renovation/ENVOY MORTGAGE LAUNCHES FHA FULL 203(k) LOAN PRODUCT

Unique Product Increases Buying Opportunities for Borrowers, Rolling in Renovation and Repair Costs, Positively Impacting Neighborhoods Across America

Houston, TX – January 7, 2013 – Envoy Mortgage, a full-service mortgage banking firm operating retail branch locations across the United States, and currently originating mortgage loans in more than 48 states, recently expanded its FHA 203(k) loan product offering to include a full 203(k) loan option in which borrowers have an unrestricted window for costs of renovation and repair on a home purchase—limited only by area FHA loan limits. To date, Envoy has been offering a streamline option, in which borrowers can combine the purchase price of a home, plus up to $35,000 for renovation and repair costs, into a single mortgage transaction.

“The U.S. real estate market continues to have a high inventory of distressed properties, which includes foreclosures and REOs that are a result of the economic downturn,” said Suzanne Schakett, Senior Vice President of Builder Products in Envoy Mortgage’s National Builder Division. “The full 203(k) loan is a construction-related product that essentially benefits everyone involved in real estate today. For borrowers, it means opportunities to take advantage of favorable prices on existing homes and to be able to customize the homes to their specifications. For real estate agents, the 203(k) products allow a means to sell distressed properties “as is”. And for builders who have expanded their business to include renovations, these products provide much-needed financing for their buyers. At a minimum, these unique products allow us to move through some of the overhang inventory in order to bring the new construction market back to a more normal state. All in all, such loan products have a positive impact on neighborhoods across the United States.”

The full 203(k) FHA loan augments Envoy Mortgage’s suite of products that fall under its National Builder Division umbrella. Through either 203(k) loan product, a borrower can purchase an existing property, roll in costs of renovation and repair into the final loan amount, close on the property “as is,” and then begin the repairs.

“These 203(k) products are in fact FHA-insured loans. Borrowers can purchase properties under essentially similar guidelines as the FHA 203(b), which allow most to qualify with a 3.5 percent down payment—regardless of the costs for renovation and repair,” Schakett said. “FHA loan limits vary from market to market. These loan products stimulate affordable housing and the economy by encouraging sales of distressed properties, rehabilitating neighborhoods, and expanding the buyer pool to FHA-qualified families. Because these products can be slightly more complex than an FHA 203(b) loan, Envoy’s loan officers are well-trained as experts to effectively help borrowers find the product that meets their needs based on the property condition and their financial profile.”

“The addition of the full 203(k) loan product is really a win-win across the board” Schakett said. “In 2013 there will still be a record number of properties on the market that need some form of rehabilitation. These products represent the perfect solution for a large percentage of them to sell and kick start our ongoing recovery in a meaningful way.”

For more information, please contact me.

FHA 203K Streamline: Repair Your New Home or a Foreclosure, Bank Owned or Short Sale Property

Rehab Remodel 203K Wisconsin California OconomowocI know this happens all the time: Agents are out looking at homes with buyers and they pull up to a home that reads really well on the MLS sheet. It’s the house that the buyer is saying – before they even walk in the door – is exactly where they see themselves living. Upon entry however, things change, the home is nowhere near move-in ready.

This could be a bad day for some, but here at Envoy Mortgage in Oconomowoc, we now offer (in-house; not brokered) the FHA 203(k) streamline program to not only help a buyer acquire this non-move-in-ready home but also help them to finance the repairs it needs! A buyer really can make it be the home of their dreams!

While the full program details can be read here, below are the general uses for this amazing program:

  1. This loan allows up to $35,000 in repairs to be made to a home
  2. This program allows for homeowners in Wisconsin, California or anywhere USA to:
    • To purchase a dwelling and the land on which the dwelling is located and rehabilitate it.
    • To refinance existing liens secured against the subject property and rehabilitate such a dwelling.

Examples of repairs, replacements and/or upgrades are listed below:

  • Roof, gutters, or downspouts
  • Electrical and plumbing systems
  • HVAC Systems
  • Finish or remodel unfinished basements (as long as major structural work is not needed; i.e. moving a load bearing wall)
  • Remodeling of a kitchen or bathroom
  • Flooring and carpet
  • Windows, storm doors, and other weatherization items
  • Painting
  • Major Appliances
  • Addition of attached decks
  • Siding

The process is really quite easy:

  1. Locate the subject property if it is not your current home
  2. Set up times to meet with an approved General Contractor (GC) – and possibly a home inspector – to make your “wish list” of items that you want to repair/replace/upgrade
  3. The GC then submits the written cost of repairs
  4. Appraisal is requested to determine the “as is” value and the “after rehabilitation” value
  5. Loan documents are submitted with final figures from appraiser and contractor to underwriting for final approval
  6. Go to the closing on the soon-to-be home of your dreams!

Traditionally, this process will take about 30-45 days. Of course there are shorter and longer time frames, depending on the third parties involved. If you would like to see if you qualify for this program, please contact me
for a completely free consultation.