Embrace Home Loans, a direct lender for Fannie Mae and Freddie Mac, approved by the Federal Housing Administration (FHA) and U.S. Department of Veterans Affairs (VA), and an issuer for Ginnie Mae, announced that it has begun offering Streamline 203(k) loans. In a release, the company said the loans cover a variety of home improvements and repairs and allow borrowers to take out a single mortgage covering the purchase and rehabilitation of a dwelling. Much like other FHA loans offered by the company, the FHA insures the 203(k) loan in a partnership with Embrace Home Loans.
Streamline 203(k) loans can accommodate repair costs up to $35,000. To be eligible for the program, a property can only contain between one and four dwelling units and must have been constructed for at least one year. Not all home improvements are covered under the 203(k) program.
"Embrace Home Loans has already helped hundreds of thousands of families with their mortgage financing needs," said Kurt Noyce, president of Embrace Home Loans. "We look forward to helping many more families revitalize communities by offering Streamline 203(k) loans. The program streamlines the complicated process of buying a home requiring rehabilitation, allowing homebuyers to combine the cost of purchase and improvement in a single loan, making it a great choice for many prospective and current homeowners."
Streamline 203(k) loans cover the repair or replacement of roofs, gutters, HVAC systems, plumbing, electrical systems and flooring. They can also be used to cover minor, non-structural remodeling projects, painting, weatherization, disability access improvements and appliance replacement. They cannot be used for major remodeling projects, new construction, structural repair, environmental mitigations, landscaping, luxury improvements or certain, more complicated home improvement projects.
"The 203(k) loan program was created by the Federal Housing Administration in order to rehabilitate older neighborhoods and to expand home ownership opportunities," said Noyce. "By adding Streamline 203(k) loans to our product offerings, we are able to continue this noble project and assist in the revitalization of communities across the United States. And because Embrace Home Loans is an experienced FHA insured loan lender, we are well equipped to manage the 203(k) loan program smoothly and effectively. We are very proud to serve communities and families by providing this important loan product."
For more information, visit www.embracehomeloans.com.