Friday, October 8, 2010

Everett FHA 203k Rehab Mortgage Program | How To Buy REO's In Bellevue, Seattle & Everett, WA

The FHA 203k Rehabilitation Loan is growing in popularity in the Seattle area as more REO's (bank owned), short sales, and older homes hit the market. The reason for demand of this loan program is mostly due to the inability (or unwillingness) of the seller, and in most cases that is the "bank" to pay for any repairs to distressed properties. Many REO or short sale listings today require special attention to deferred maintenance or repairs neglected by the seller or damages caused by the seller.

Recently I have been involved in 3 transactions that required repairs that exceeded my borrower's budget for the downpayment. The main purpose for writing this blog is two-fold:

(1) All 3 clients met with other realtors and loan officers that either tried to steer them in another direction, away from using the 203k loan, and even buying the one home they wanted to purchase. They were referred to me bacause of my knowledge, confidence and ability to fund these tough, but valuable mortgage loans.

(2) The other reason for writing this blog to to assist in building back some of our local communities by educating consumers, asset managers, realtors and banks of the power of this loan program.

The qualifying guidelines for this program fall under standard FHA Mortgage Guidelines:
- 620 min. Credit Score (Contact Dan Keller for 30-day Credit Repair)
- 3.5% Down Payment
- no debt-to-income restrictions, subject to AUS Findings
- down payment can be gifted from family, employer or non-profit organization
- non-occupying co-borrowers are allowed (a non-occupying co-signer)
- closing FHA 203k Rehab loans in 45 days or less!

The Seattle FHA 203k Rehabilitation Loan has two special program designed to help buyers:
1. The FHA 203k Rehab Streamline Program - this program allows for up to $35,000 in repairs to be done on the property and only 3.5% down, with min 620 fico score.
2. The FHA 203k Full Program - this program allows for total renovations and fall under regional FHA loan limits (King County $567,500). Please refer to the Powerpoint presentation on my Seattle FHA 203k Mortgage Website for more detailed information.

The FHA 203k loan program is basically a glorified home imprvement loan that is tied into one loan and a low, 30-yr fixed rate.
Some examples of repairs that are allowed are:
- Appliances
- Gutters, roof and down spouts
- Paint, and lead-based paint removal
- Flooring repairs
- Weatherizing, window, heating, plumbing, electrical...
- Additions and tear down of non-permitted work
... and so much more, please see the powerpoint presentation I have attached on my FHA 203k Website.

If you are a Realtor and are interested in better understanding the FHA 203k Rehab Program, please contact me directly at and I will be happy to share with you everything you need to know to be prepared to market and offer this product to your clients.

If you are a homebuyer interested in using the FHA 203k Rehab program to buy your home and working with a local mortgage bank that specializes in FHA 203k mortgages, please contact me at directly at 425 350-7136.