Ask The Roofing Company: Streamline 203k Loans
How many times do we find a fixer upper that suits our budget and our needs but have to pull out of the deal just because we do not have enough money to finance the roofing repairs or replacement? With FHA Streamline 203k program, you no longer need to walk off from the deal of your dream house. It’s time to call in the roofing company and ask them everything about the loan scheme.
Calling in the Roofing Company
What is a Streamline 203k Loan?
A Streamline 203k loan, part of FHA 203K program, is a loan that we can get along with a mortgage, to fund the purchase of a fixer upper. It is insured by FHA and provides a minimum amount of $5000 to fund the repairs, with the maximum rising to $35000. This amount ensures that enough money is available to fund the roof repairs and replacement comfortably along with other minor repairs.
How Streamline 203k Loan Works?
- Buyers find the home that they wish to purchase.
- Buyers contact a contractor, a roofing company in case of roof repairs that calculate the total cost of the repairs.
- The application along with the repair estimates are submitted to a loan provider, which are then worked on by the FHA and the loan is insured.
- Half of the repair cost is provided to the roofing contractor through escrow account, while the other 50 percent is provided once the work is complete.
- Repairs less than $15000 are not required to be inspected.
Lowdown on Streamline 203k Loan
- Low down payment is required as compared to private sector mortgages and improvement loans.
- They are designed for low income borrowers, who may have a credit rating as low as 500.
- The interest rates are low.
- By providing the funds even before the repair process starts, it provides convenience to the seller as well as the buyer.
- To be applicable for the loan, the property must be a year old and the borrower is required to stay in the property during the entire course of the repair project. If the stay is not applicable, standard 203k loan is another option.
- Streamline 203k loans do not cover structural repairs like load bearing walls, foundation repairs etc.
Streamline 203k loans are a great way to finance the purchase of a house with leaky or damaged roof; a useful financial tool especially for the people in their mid twenties. If you think you need any professional help, contact your very own roofing company and we will guide help you with the application process of Streamline 203k loan.