Whether you are considering purchasing a home in need of some light updates, major renovations or anything in between, a renovation loan may be something worth thinking about. Although a somewhat quick summary, below you will find some more information about the revovation loan process.
WHY do buyers consider renovation loans?
When considering the following:
Estate/Short Sales/Foreclosures
Older homes needing updates
Expansion/Finishing needs
HOW is the loan structured?
Total Acquisition Price = Purchase Price plus Renovation Costs
WHAT are some of the different types of loan options?
FHA 203 K (Full or Streamline K), EEM, EIM
* Streamline - Max of 35k, No Minimum, No contingency reserve, No Structural Repairs
* Full - Minimum 5k, Structural Repairs Ok, HUD Consultant required, Contingency reserve required, One contractor
* EEM/EIM - Energy Efficient/Energy Improvement Mortgage - allows lender to increase buyers income by estimating cost savings from energy efficient improvements
WHO are these types of loans for?
Buyers with 640 Minimum Credit Score
Buyers who would be subject to normal FHA and Conventional Guidelines
Contractors that are MHIC licensed, have at least 2% reserve fund (cash or credit access) and can have estimated repair completion of 60 days from contract acceptance date
Erik Hart
REALTOR®, BPI Analyst
Severna Park Sales
Long and Foster Realtors
410-544-4000 Office
443-889-6860 Cell
http://www.erikhart.lnf.com/
http://www.topofthemarket.blogspot.com/
REALTOR®, BPI Analyst
Severna Park Sales
Long and Foster Realtors
410-544-4000 Office
443-889-6860 Cell
http://www.erikhart.lnf.com/
http://www.topofthemarket.blogspot.com/
