Though they seem to be the exception, there are those who find the home of their dreams. They’re the people who take advantage of the distressed home market, those that have learned the potential of FHA’s Streamline K loan and take full advantage of it.
FHA’s Streamline K gives you that kind of control. You make the offer on the foreclosed/distressed property determine the repairs and upgrades you want and then you send them to an approved FHA lender.
Envision what this will mean for you and your family. Designing the perfect kitchen. Being able to prepare your meals without being feeling closed in. Redoing the Master Bath creating your own special place. Building that new deck. Entertaining your friends outside as well as in. Then fix your gutter. Then a new roof. Home is good! Sit back. Enjoy life.
WHY FHA STREAMLINE K?
It is a proven rehabilitation loan that works, all the components you need for the purchase or refinance of a home that is at least one year old is in place: it is an extraordinary loan product, it is only limited to your imagination.
What can I do with the Streamline K?
1. Repair/Replacement of roofs, gutters and downspouts
2. Repair/Replacement/upgrade of existing HVAC systems
3. Repair/Replacement/upgrade of plumbing and electrical systems
4. Repair/Replacement of flooring
5. Minor remodeling, such as kitchens, which does not involve structural repairs
6. Painting, both exterior and interior
7. Weatherization, including storm windows and doors, insulation, weather
stripping, etc.
8. Purchase and installation of appliances, including free-standing ranges,
refrigerators, washers/dryers, dishwashers and microwave ovens
9. Accessibility improvements for persons with disabilities
10. Lead-based paint stabilization or abatement of lead-based paint hazards
11. Repair/replace/add exterior decks, patios, porches
12. Basement finishing and remodeling, which does not involve structural repairs
13. Basement waterproofing
14. Window and door replacements and exterior wall re-siding
15. Septic system and/or well repair or replacement
What can’t I do?
1. Major rehabilitation or major remodeling, such as the relocation of a load bearing wall
2. New construction (including room additions)
3. Repair of structural damage
4. Repairs requiring detailed drawings or architectural exhibits
5. Landscaping or similar site amenity improvements
6. Any repair or improvement requiring a work schedule longer than three (3)
months; or Rehabilitation activities that require more than two (2) payments
per specialized contractor. That would necessitate a “consultant” to develop a
“Specification of Repairs/Work Write-Up”
7. Require plans or architectural exhibits
8. Require a plan reviewer
9. Result in work not starting within 30 days after loan closing; or cause the
mortgagor to be displaced from the property for more than 30 days during
the time the rehabilitation work is being conducted. (FHA anticipates that, in a typical case, the mortgagor would be able to occupy the property after mortgage loan closing)
Comparatively there is no better loan product than the FHA product line.
Here are a few quick facts about FHA:
Started in 1934
Over 34 Million Homeowners have an FHA Mortgage
Only Requires 3.5% Cash Investment
As a result of the Incentives to use FHA 160,000 homes will be bought this year.
** Robert B. Summers is senior residential mortgage advisor of Southwest Funding, LP Branch 777, as well as creator of the highly successful "Mortgagism - The Interactive Home Buying Game" and the "Making Loans Work Program." He has lectured on FHA borrowing and home-buying best practices, and has written more than 100 articles on mortgage lending and borrowing. Robert is still an active mortgage originator believing that you cannot take advice from someone who is not actively practicing. Contact him at this address.
To review this article and additional articles follow this link: http://www.examiner.com/examiner/x-12359-Indianapolis-Mortgage-Examiner~y2009m6d3-FHA-Streamline-K
