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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.