Envoy Mortgage has expanded its FHA 203(k) loan product offerings to include a full 203(k) loan option, which gives borrowers an unrestricted window to cover the costs of renovation and repair on a home purchase—limited only by area FHA loan limits that vary from market to market. The renovation and repair costs are rolled into one FHA 203(k) mortgage.
Envoy already currently offers a streamlined 203(k) product, in which borrowers can combine the purchase price of a home, plus up to $35,000 for renovation and repair costs, into a single mortgage transaction. The new full 203(k) product gives borrowers the option to devote more funds for repair and renovations, which are rolled into the mortgage amount.
“The U.S. real estate market continues to have a high inventory of distressed properties, which include foreclosures and REOs (bank-owned homes) that are a result of the economic downturn,” said Suzanne Schakett, senior vice president of builder products in Envoy Mortgage’s National Builder Division. “The full 203(k) loan is a construction-related product that essentially benefits everyone involved in real estate today.”
The full 203(k) FHA loan augments Envoy Mortgage’s suite of products that fall under its National Builder Division umbrella. Through either the streamline or full 203(k) loan product, a borrower can purchase an existing property, roll in costs of renovation and repair into the final loan amount, close on the property “as is,” and then begin the repairs.
The 203(k) products are FHA-insured loans and borrowers can purchase properties under essentially similar guidelines as the FHA 203(b), which allow most to qualify with a 3.5 percent down payment, regardless of the costs for renovation and repair. FHA loan limits vary from market to market, reflecting the cost of housing in each market.
“These loan products stimulate affordable housing and the economy by encouraging sales of distressed properties, rehabilitating neighborhoods and expanding the buyer pool to FHA-qualified families,” Schakett said. “Because FHA 203(k) products can be slightly more complex than an FHA 203(b) loan, Envoy’s loan officers are well-trained as experts to effectively help borrowers find the product that meets their needs based on the property condition and their financial profile.”