EagleBank, a community-minded and solution-oriented bank is excited to work with customers who also believe in their community and want to enhance and maintain their DC home. So, in conjunction with the Washington Informer’s OUR HOUSE initiative, EagleBank shares information on the FHA 203k mortgage loan – a solution for properties in need of renovations.
Changes. We all experience them, but when it comes to critical changes that must be done to your home in order to remain there comfortably, your first thought is “How can I afford it?” Whether you need extensive exterior repairs, a new kitchen, a serious plumbing fix, termite or foundation wok, or more room for a new baby or elderly parent moving in, there are so many reasons that may challenge your ability to maintain and keep the house you affectionately call HOME. The FHA 203k loan canmake it happen. Rehab funds packaged into a new mortgage loan may be your solution to “How can I afford it?”
Even a little TLC to a house structure and essential maintenance can cost a bundle of money, but often it goes beyond TLC or just normal repairs. Creating an in-law suite, office, or readying your home for senior living and retiring-in-place can make a difference when holding on to your family home. And, perhaps you have extra yard or interior space where you could add a rental unit or two for extra income? All these reasons can make a big difference in maintaining and enjoying the home that is near and dear to your family.
The FHA 203k renovation loan lets you refinance an AS IS property, regardless of current value or condition. Your mortgage lender, along with the assigned HUD and FHA experts and your chosen contractor, make the numbers work, calculating the rehab needs and costs to address and create your specific loan. With today’s lower rates in mind, your new mortgage amount may surprise you. The FHA 203k renovation mortgage loan is also available for home purchasers who have their eyes on a home that they can afford because it in disrepair; but rehab dollars could turn it into the home they ultimately visualize. The 203k renovation loan is a solution for overcoming the challenges of buying or owning and maintaining a home for comfortable and secure family living for generations to come.
It may sound simple, and it is for the professionals who put the loan together for you, but there are requirements that will help you understand, initially, if the 203k loan fits your needs. A streamlined (or limited) version exists for rehab assistance of $35,000 and under (with initial minimum repair of $5,000); the maximum amount of rehab assistance is $822,375 in the DC area. Your home’s AS IS appraised value is collateral for the loan. Your selected and approved FHA/HUD contractor must provide the plans to the FHA appraiser, and your loan can go up as high as 110% loan-to-value of after-renovation value. (The interest on that portion of the loan that exceeds Fair Market Value is not tax-deductible. Consult a tax adviser to learn more.)
HUD and FHA consultants make sure the budget is feasible and the renovations conform to guidelines and approvals. Your loan team can provide additional details on fees, permits, costs and final monthly payments.
Working with an experienced lender and well-respected bank is essential. Both are experienced when it comes to working with (HUD) Housing and Urban Development and (FHA) Federal Housing Authority officials in the aspects of this home-saving, home-enhancement rehabilitation loan process. EagleBank is especially committed to providing financial assistance to the under-served neighborhoods in our Metro area. EagleBank provides innovative services and loans of many types to first-time buyers, families with unusual financial circumstances, and communities that are not easily reached or properly represented. A community commitment for which the Bank is respected.
For more information, please contact Steve Block, VP, Senior Mortgage Banker at EagleBank, 240.406.1111 – NMLS #649842 SBlock@EagleBankCorp.com. EagleBankCorp.com/mortgages.NMLS# 440513. EagleBank is an Equal Housing Lender.
As a community bank, EagleBank offers knowledge of Affordable Housing and First-Time Home Buyer resources, as well as refinance services. Contact us at HomeLoans@EagleBankCorp.com.
This is not a commitment to lend. To be eligible, buyer must meet HUD minimum down payment, underwriting and program guidelines. All loan applications are subject to credit and property approval. Annual Percentage Rate (APR), and program, rates, fees, closing costs, terms and conditions are subject to change without notice and may vary depending upon credit history and transaction specifics. Property taxes, flood and/or property hazard insurance may be required. This information is for educational purposes only and is not to be taken as guidelines or guarantees to improve your credit or financial situation or eligibility to secure a home loan.