Property Damage & Disaster Restoration Blog: Long Island & New York City

Why Renovate With a 203K Streamlined Loan?

Posted on Mon, Sep 28, 2009 @ 02:19 PM

Because You Can!

I'll keep this very brief...


You are purchasing a home that needs minor repairs (repairs under $35,000 qualify for a streamlined loan). Incorporating the rehab into your mortgage payment allows you to have just one payment. Some highlights include:

  • Loan amounts up to 110% of the home's appraised value; renovation amounts up to $35,000.
  • No work write-up, no inspection required if repairs are less than $15,000 and no HUD consultant required.
  • There is no longer a minimum of $5,000 in repairs for a 203K Streamline.
  • On a 203K Streamline, up to 50% of the rehab amount can be requested immediately following the closing. After closing the work can start.
  • For a 203K Streamline, there is a maximum of 2 draws per contractor.
  • Loan can be used for many improvements, including repair/replacement of: roofs, plumbing, electrical, flooring, minor remodeling, windows, doors, etc.
  • Available for mortgage refinance transactions including those where the property is owned free and clear.

203K Streamlined Loans are available through HUD approved lenders. For more information on how Advanced Restoration can be your 203k contractor, please contact Gary Matzelle at (516) 903-4107.

Tags: foreclosure, 203(k) loan, mortgage, fha, advanced restoration, disrepair, rebuild, home repair, buying a home, 203k, hud, 203k streamline, rehab

Ineligible 203k Streamlined Repairs

Posted on Wed, Sep 02, 2009 @ 04:09 PM

What items remain ineligible for the Streamlined (k) program?

FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.

A question that has consistently come up over the past few weeks has been related to 203k streamlined repair exclusions.

Per HUDs' Mortgagee letter 2005-50, the following information will help identify what is not covered if you are applying for a 203k Streamlined loan.

Properties that require the following work items are not eligible for financing under the Streamlined 203(k) program:

  • Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
  • New construction (including room additions);
  • Repair of structural damage;
  • Repairs requiring detailed drawings or architectural exhibits;
  • Landscaping or similar site amenity improvements;
  • Any repair or improvement requiring a work schedule longer than six (6) months; or
  • Rehabilitation activities that require more than two (2) payments per specialized contractor.

Mortgagors may not use the Streamlined (k) program to finance any required repairs arising from the appraisal that do not appear on the list of Streamlined (k) Eligible Work Items or that would:

  • Necessitate a “consultant” to develop a “Specification of Repairs/Work Write-Up”;
  • Require plans or architectural exhibits;
  • Require a plan reviewer;
  • Require more than six months to complete;
  • Result in work not starting within 30 days after loan closing;
  • 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).

Advanced Restoration Corporation is a full-service restoration contractor with the ability and 203(k) knowledge to provide complete Rehabilitation & Restoration services to your new home!

For more information about 203(k) loans and partnering with Advanced Restoration, please contact Gary Matzelle at (516) 903-4107.

Tags: foreclosure, 203(k) loan, property damage, restoration companies, mortgage, fha, hud loan, advanced restoration, reconstruction, homeowner tips, home repair, buying a home, refinance, 203k

Own It...Then Make It Your Own

Posted on Thu, Jul 02, 2009 @ 03:32 PM

Did you know that Wells Fargo Home Mortgage has a Purchase & Renovate Loan?

The program offers financing that enables you to immediately turn the house you just bought into the home you always wanted. Add a bath, cook up a new kitchen, repai, renovate or extend- all with a single loan at attractive first mortgage rates.

Built-in benefits to make home improvements:

More Money
The loan amount is based on the value of your home after the home improvements have been made.

Lower Monthly Payments
Purchase and improvements are financed simultaneously, so renovation costs are spread out through the entire term of the loan.

Tax Benefits
Interest on renovation costs is included in the first mortgage, so it may be tax deductible.

Speed
Renovation can begin immediately after closing

Single-close Simplicity
Just one application, one set of fees and closing costs, one monthly payment.

Flexibility
No required improvements or restrictions on repairs, luxury items such as pools and spas may be included.

Options
Fixed and adjustable rate mortgage programs.


Advanced Restoration Corporation is a family-owned and operated full-service property damage restoration company with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area. Have us renovate your next home!

Tags: fire restoration, water damage restoration, mortgage, wells fargo, advanced restoration, water extraction, homeowner tips, restoration company, flood damage, storm damage, refinance

Streamlined 203 (k) Loan: Repairs/Foreclosure

Posted on Wed, Mar 11, 2009 @ 05:13 PM

Foreclosures continue to dominate the real estate market and as a result, many homes are left in disrepair. If you are contemplating the purchase of a foreclosure requiring minor repairs, you may want to consider a "Streamlined" 203(k) loan.

The Streamlined (k) Limited Repair Program was developed to augment FHA’s existing Section 203(k) rehabilitation program for less extensive repairs and improvement.


What improvements are eligible under the Streamlined 203 (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.

The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:

  • Repair/Replacement of roofs, gutters and downspouts
  • Repair/Replacement/upgrade of existing HVAC systems
  • Repair/Replacement/upgrade of plumbing and electrical systems
  • Repair/Replacement of flooring
  • Minor remodeling, such as kitchens, which does not involve structural repairs
  • Painting, both exterior and interior
  • Weatherization, including storm windows and doors, insulation, weather stripping, etc.
  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
  • Accessibility improvements for persons with disabilities
  • Lead-based paint stabilization or abatement of lead-based paint hazards
  • Repair/replace/add exterior decks, patios, porches
  • Basement finishing and remodeling, which does not involve structural repairs
  • Basement waterproofing
  • Window and door replacements and exterior wall re-siding
  • Septic system and/or well repair or replacement

What are the minimum and maximum amounts for repair costs under this program?
Given the need for homeowners to make minor repairs without exhausting personal savings, and in consideration of the increasing cost of materials, the minimum repair cost of $5,000 is eliminated and the ceiling is now raised to $35,000. This revised maximum repair/rehabilitation amount recognizes the cost of making older homes more energy efficient. When the repairs exceed $15,000, the mortgagee must perform or obtain an inspection to determine that all listed repairs were completed.

Can this program be used for repairs and improvements on purchases of HUD Homes?
Like the regular Section 203(k) program, Streamlined (k) may be used for single-family housing sold by HUD. REO properties that have been designated by FHA’s Management and Marketing contractor (M&M) as “insurable” with repair escrow ($5,000 or less in required repairs) or “uninsurable” (with more than $5,000 but no more than $35,000 in required repairs) are eligible for the Streamlined (k) program provided that the repairs qualify as eligible work items as outlined.

Advanced Restoration is a full service property damage restoration company that specializes in the rehabilitation & restoration of homes and businesses. The company is family-owned and operated with a combined 75 years experience in dealing with Fire Damage Restoration, Water Damage Restoration, Flood & Storm Damage, Mold Remediation, Smoke Damage Restoration and Reconstruction. We service Long Island (Nassau County, NY; Suffolk County, NY) and the New York Metro area.

For more information on how Advanced Restoration can partner with you, please contact Gary Matzelle at (516) 903-4107, or send an email to gmatzelle@advancedrestoration.com.
Please visit our Website: http://www.advancedrestoration.com/

Tags: disaster, foreclosure, 203(k) loan, fire restoration, water damage, mold, mortgage, advanced restoration corporation, reconstruction, disrepair, flood damage, home repair

Home Restoration Repairs: 203(k) Program/Rehabilitation Mortgage

Posted on Tue, Dec 30, 2008 @ 09:14 AM

It's no secret that many homes across the country, including New York, have been placed into foreclosure because of the economy. As a result, some homes become neglected over time and develop situations that subsquently require a restoration company to perform repair work. Initiating necessary foreclosure repairs for a property can be accomplished by a potential homeowner applying for a mortgage related to the 203(k) Program.

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs like a 203(k) mortgage. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.

When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods.

The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.

Advanced Restoration Corporation is a full service property damage restoration company that has the abiltiy to execute all necessary repairs to a property that qualifies for a 203(k) loan.

For more information on the 203(k) program, contact Continental Home Loans:

Wendy Doerzbacher-Mortgage Planner
Continental Home Loans
175 Pinelawn Rd.-Ste 400
Melville, NY 11747

(800) 540-8838 Ext. 4140
(516) 982-6339 Cell
Email: wendyd@cccmtg.com

This information is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.

Tags: foreclosure, 203(k) loan, property damage, fire restoration, floods, ny water damage company, puffbacks, restoration companies, water damage restoration, mold, black mold, puff-back, mortgage, advanced restoration, advanced restoration corporation, long island water damage, mold remediation, reconstruction, restoration, suffolk county restoration, water extraction, disrepair, home repair, frozen pipes

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