FHA 203K Streamline
At Envoy Mortgage we participate in the FHA 203K Streamline loan, but do not currently offer the full 203k loan. The 203K Streamline is a great loan for REO's, short sales, foreclosures and virtually any other type of sale or refinance where the borrower would like to finance the cost of home improvements. Allowing a minimum of $5,000 and a max of $35,000 for repairs. See the flyer below for some more details.
The process is fairly simple. You apply for a loan with Envoy Mortgage and we will work with your Realtor to obtain all the necessary inspections and contractor bids. The bids are then sent in with your loan package and underwritten with the loan. After closing the funds are dispersed in two sets. one within the first month and then again when all work is completed. You have 6 months to complete the work and if the amount of work is over $15,000 a HUD inspector will be required to sign off the job.
The appraisal is done with the future value in mind and the max loan to value is 110%. This means if you purchase a home for and it is appraised for $200,000 you will be allowed a loan amount up to $220,000. Using this extra cash for the renovations.
You can visit my blog post below to see how this can be used with a refinance.
