You’ve been searching and searching for that home that’s just right and its just not out there. Don’t get discouraged, there are ways to make that” its ok” home into your “I can’t believe this is ours” home. A rehab loan may be just the ticket. What is a rehab loan? Its a loan that allows you to buy a home for a price and borrow a little or a lot more to make those changes that would make the house perfect for you. There are a few options, the following is Rehab Loan information in Central Ohio.
FHA STREAMLINED 203(K)
This loan allows you to combine your mortgage loan and repair costs into one long-term, fixed-rate mortgage to finance both the purchase and the rehabilitation of the property. The total mortgage amount is based on the projected value of the property after all of the repairs and updates have been completed, including the labor costs. The Streamlined 203(k) product is available to finance repairs up to $35,000. The property must be a one- to four-family home that has been completed for at least one year.
Here are examples of what you can use a Streamlined 203 K for:
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
• 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 and porches
• Basement finishing and remodeling, which does not include structural repairs
• Basement waterproofing • Window and door replacements and exterior wall re-siding
• Septic system and/or well repair or replacement.
The next option is the
FHA 203(k) Standard Consultant loan.
If your home requires more than $35,000 in repairs, 203(k) Standard Consultant loan is the best choice for you. Since the Consultant K allows for more extensive work to be done, a 203(k) Consultant will play a crucial role in the 203(k) process. A 203(k) Consultant will inspect your property and help determine which repairs are required to bring the property up to FHA minimum standards. Before you apply for a 203(k) Consultant Loan, use this chart to determine which home improvements are 203(k) eligible repairs. Note: this list is not all inclusive.
- Structural alterations and additions
- Garage (attached / detached / new)
- Remodel kitchen or bathroom
- Install appliances
- Changes to eliminate deterioration and reduce maintenance
- Repair swimming pool (up to $1,500)
- Modernize plumbing/heating/air conditioning/electrical systems
- Install or repair well/septic system
- Install or repair roofing / gutters / downspout
- Install flooring / tile / carpet
- Energy conservation improvements
- Major landscaping / decks / fencing
- Improvements for accessibility
- Interior and exterior painting
- Improvements that are a permanent part of the real estate
Here’s the catch, you cant perform any of this work yourself. The lenders require that you utilize an approved contractor for these repairs. The process is fairly simple however, it can be lengthy. You will be required to have an approved contractor create a list of the requested repairs and give bids on those repairs. Once the lender receives to those repairs the property must appraise for the total amount or After repair value. Most lender have a list of approved contractors for these loans. There are some lenders who do no service or offer these loans. Its best to contact a Realtor who works with these types of properties and get a recommendation of lenders who sell this product.
The great thing about this type of loan is it is available in all areas of Central Ohio which includes the following suburbs, New Albany ,Upper Arlington, Dublin, Powell Grandview Heights, Bexley ,Worthington , Pickerington, Hilliard , Westerville, Canal Winchester , Gahanna, Grove City, Groveport , Pataskala, Reynoldsburg, Galloway as well as Columbus.