The Home Buyer's Korner

Information presented should be used for educational purposes only.

July 11th, 2015

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GREATER WAIPAHU HAWAII

The Home Buyer’s Korner

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Appliances & FHA 203K Mortgages

energy efficient applicances2The purchase of a house in need of repairs is often a catch-22 situation; because most lenders won’t lend the money to buy a home unless the repairs are complete, and the repairs can’t be done until the house has been purchased.

Well, the FHA 203K streamline or traditional home loan solves the issue. The FHA 203K streamlined home renovation loan covers any non-structural repairs, updating and renovations. Unlike the FHA 203K traditional home renovation loan, the streamlined version doesn’t require home owners to hire licensed architects, contractors or engineers to complete the process. You simply need to select but not purchase the needed items and services, then submit them with your mortgage application. Once you’ve closed your lender will set up an escrow account that you can access to pay for the approved updates and services and all you need to do is insure it’s done within 30 days of closing escrow. 

The streamlined FHA 203K loan involves significantly less paperwork than the traditional FHA 203K renovation home loan and FHA doesn’t restriction the program to any specific housing type or geographic area.

Some Projects covered by a streamlined 203(k) can include:

  1. Roofs and gutters; 
  2. Heating, venting and air conditioning;
  3. Plumbing and electrical;
  4. Minor kitchen and bath remodels;
  5. Flooring and painting;
  6. New windows and doors;
  7. Improving energy efficiency;
  8. Adding a deck, patio or porch;
  9. Buying new appliances.

Yes, you can include new appliances in your loan! It’s a great opportunity for those who are considering older homes with dated and/or non-efficient appliances and upgrade to something energy efficient, without having to purchase with high interest rate credit cards or lay out a substantial amount of cash after you’ve already scraped up your down payment of just 3.5 percent. Oh and by the way, that 3.5 percent can be a gift or soft second.

You’ll also reap the benefit of reduced utilities in comparison to older non energy efficient appliances and if energy efficiency is your game don’t forget to ask your lender about adding an energy efficient mortgage to your FHA 203K streamline home renovation loan.

The FHA 203K streamline renovation home loan has a $35,000 limit for appliances, renovation and repairs, while adding and Energy Efficient mortgage request you can increase that $35,000.00 limit by about another 5 percent of the sale price for energy efficient repairs, improvements and appliance like a hot water heater, new HVAC, double door energy efficient refrigerator, stove or dishwater, even a new highly efficient washer and dryer can be included!

In today’s low interest rate environment using an FHA 203K home renovation loan will increase your house payment by less than five dollars for per $1000 borrowed. Try finding another financing option to secure $35000 to make a house your dream home and you’ll be hard pressed to find one where the repayment of less than $175 a month! Furthermore, it’s tax deductible and purchasing appliances to paying for repairs on your credit card isn’t. Be sure to ask a mortgage professional about the FHA 203K home renovation loan program and they’ll be glad to help you determining whether or not it fits your needs.

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HAWAII HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

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