ReHab Loans :

 FHA Section 203 (k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the costs of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. This Rehab Program allows borrowers to complete the work on their property after they close on their FHA Mortgage. 

FHA STANDARD 203 (k) Program: 

 Section 203 (k) insures mortgages covering the purchase or refinancing & rehabilitation of a home that is at least one year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account & released as rehabilitation is completed. The cost of the rehab must be at least $5,000, but the total value of the property must still fall within $417,000  maximum allowable FHA mortgage in the State of Illinois.

 The value of the property is determined by either (1) the value of the property before rehab plus the cost of the rehab, or (2) 110% of the appraised value of the property after rehab, whichever is less. Some types of improvements this Section 203 (k) financing include:

  • structural alterations & reconstruction (bathroom & kitchen remodels)
  • modernization & improvements to the home's function (siding)
  • elimination of health & safety hazards
  • changes that improve appearance & eliminate obsolence
  • reconditioning or replacing plumbing; installing a well and / or septic system
  • adding or replacing floors and / or floor treatments
  • major landscape work & site improvements
  • enhancing accessibility for a disabled person
  • making energy conservation improvements (heating & air conditioning systems)

Properties financed under this program must meet basic energy efficiencies & structural standards

Homebuyers & homeowners wishing to do limited upgrades to their home involving uncomplicated rehabilitation & improvements without plans, consultants, engineers, & architects may utilize the FHA Streamline 203 (k) Program.

 FHA LIMITED 203 (k) Limited Repair Program:

This credit qualifying, no cash out program permits homebuyers and homeowners to finance up to an additional $35,000 into their mortgage to improve their home. The total amount you would be borrowing will include the price of the home, as well as, the estimate of the repairs (including the materials & the labor for the repairs). This version of the 203 (k) loan is meant for homes that are not in need of structural repairs. There is no minimum amount of repairs that need to be made to qualify for a Streamline 203 (k) Program; however the repairs are caped at a maximum of $35,000 towards repairs.

 Both versions of the FHA 203 (k) loan program require repairs to begin within 30 DAYS of the loan closing. All repairs on the home must be completed within 5 MONTHS of the closing date. There are specific guidelines from FHA (Federal Housing Administration) about what types of projects can be financed with a 203 (k) loan. Typically the FHA will not finance luxury improvements to a home, such as the addition of a swimming pool, with the 203 (k) mortgage loan products. 

FNMA HOME STYLE CONVENTIONAL PROGRAM 

Robert J.Barouski - Mortgage Loan Originator - NMLS# 204947
American Fidelity Mortgage Services Inc
Ph: 630 885-1314Fax:630 681-1476
4200 COMMERCE CT STE 200
LISLE, IL 60532 US
License # 031:0010289
www.lowererates.com
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Copyright © 2013 American Fidelity Mortgage Services Inc
Illinois Mortgage Licensee License # MB 0000303
NMLS# 179785
In the State of Illinois Mortgage Bankers are governed by:
IL Department of Financial & Professional Regulation Division of Banking
122 South Michigan Ave., Suite 1900 Chicago, IL 60603
Phone: (312) 793-3000
Fax: (312) 793-7097
Web: http://www.idfpr.com/default.asp
Toll Free Consumer Hot Line: (877)-793-3470

 

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Illinois Residential Mortgage Licensee # MB.0000303
NMLS# 179785
Indiana Department of Financial Institutions (DFI) License ID Number 11229
State of Wisconsin - Department of Financial Institutions License #159BA
In the State of Illinois Mortgage Bankers are governed by:
IL Department of Financial & Professional Regulation Division of Banking
100 W. Randolph Street, 9th Floor, Chicago, IL 60601
Phone: (312) 793-3000
Fax: (312) 793-7097
Web: http://www.idfpr.com/default.asp
Toll Free Consumer Hot Line: (877)-793-3470