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Looking at a fixer upper home?
Buy it and Fix it all in ONE loan from Cambria Mortgage

Why get an FHA 203k Loan?   

It's simple ... This loan allows you to buy a home needing a little TLC, and get the money to repair it all in one loan.

Thousands of people are using the FHA 203k Streamline loan every single month. Let us help you purchase a MN or WI home with just 3.50% down, AND give you up to $35,000 more in money to fix the house, bring it up to code, or get paint, carpet, a roof, or even appliances.

An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments:

• FHA standard guidelines
• Standard FHA down payment
• Flexible credit qualifying
• Assumable loans
• Finance up to 6 months of mortgage payments
• Purchase or Refinance and Improve all in one loan

The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to occupy the house, and for homes with one to four units.

There are two types of FHA 203(k) loans to understand:
Full and Streamline. Full is for repairs OVER $35,000.  Few lenders offer this program due to it's risk and complexity. Streamline on the other hand is for repairs UNDER $35,000, and is offered by about half of all FHA lenders.

Cambria Mortgage ONLY OFFERS THE 203K STREAMLINE LOAN - This works for the vast majority of home repairs. These loans offer the ability to finance upfront up to $35K in upgrades to rehabilitate a home. These are offered up to the maximum FHA loan limit in your county.

There is no doubt that the current real estate market offers a lot of great bargains on bank owned, Foreclosed, REO, Repo'd, etc homes. However,  many of these homes are in poor condition. Missing appliances, ruined carpet & flooring, holes in the wall, etc.  Most lenders don't offer loan programs that will be able to help folks buy homes in this condition.

This is where a little known program called the FHA 203K Rehab loan comes in. The FHA 203K Rehab loan is becoming very necessary for the purchase of many Bank Owned, REO, or Repo properties. Mortgages Unlimited offers FHA 203K streamlines loans to make the process of buying a home that needs a little TLC (or quite a bit in some cases!) easier, more affordable, and quicker. Many of us have seen firsthand, or have heard stories about foreclosed home that have been torn up, stripped, vandalized, etc. With conventional financing, these homes are very difficult to sell or buy, as they are not in move in condition, and most lenders will not lend on a damaged home.

Our FHA 203K Streamline program allows the homebuyer to put up to $35K of rehab work into the new loan. The loan closes 1 time. It is a permanent form of financing. The Streamline program should not be confused with the more complicated FHA 203K rehab loan, which can accommodate major remodels, major damage repair, storm damage, etc. The FHA 203K Streamline rehab loan is just that - Streamlined.

This loan can help with new paint (in/out), new siding, new roof, new flooring, new appliances, HVAC repair/replacement, electrical & plumbing repair & upgrades, new windows, decks, porches, patios, minor kitchen remodels, & more.

These loans are a key to helping homes become more accessible for disabled folks as the modifications can often be completed with a FHA 203K loan.

What it can't cover is landscaping, structural damage, foundation work, room additions, load bearing wall changes, etc.

There is no HUD consultant or general contractor required on the 203k streamline. However, we do suggest using a general contractor with a strong track record to ensure that your work is done & done right.

Please give us a call to find out if this loan is right for your next purchase,  your listing, or right for your next buyer that is looking at Bank-owned, REO, or Repo properties that are in need of TLC & repairs.

• Owner Occupants - Purchase - Refinance
• Non- Profits
• Investors NOT allowed

• 30 or 15 year fixed rates
• One year ARMS
• Assumable to a qualified buyer, with no money down

• Single family dwellings
• Condominium
• Townhouse
• Modular
• 1-4 Unit buildings - you can increase or decrease the number of units with this loan.

• Repair/replace roofs, gutters, and downspouts
• Repair/replace/upgrade existing HVAC systems
• Repair/replace/upgrade plumbing and electrical systems
• Repair/replace/upgrade flooring and carpets
• Minor remodeling, such as kitchens and bath (which does NOT involve structural repairs)
• Painting - Both interior and exterior
• Weatherization, including storm windows and doors, insulation, weather stripping
• Accessibility improvements for persons with disabilities
• Lead based paint abatement
• Basement finishing and remodeling (which does not involve structural repairs)
• Septic system replacement / upgrade
• Wells
• Mold abatement / remediation

NOT Allowed Repairs

• Major rehabilitation or major remodeling - such as tear down or relocation of walls
• New construction - like room additions
• Repair of structural damage
• Any repairs requiring drawings or architectural exhibits
• Landscaping or irrigation systems
• Any repair that would take longer than 6 months
• Luxury items are not eligible (like hot tubs, swimming pools, patios, decks)
• Driveway repairs

Appraisal

The appraiser will be given a copy of your repair bids along with the purchase agreement.  The appraiser must say that the after improved value of the home will equal at least the combination of the repair and purchase price. For example, if the purchase price is $100,000, and your repairs are $25,000.  The appraiser must say the house will be worth at least $125,000 when the repairs are done.

Other Eligible Costs:

• Contingency reserve (10-15%)
• Up to 6 months PITI mortgage payments
• Permit costs
• Consultant fees
• Inspection and title update fees
• Architectural & Engineering fees (if needed)

1. First get pre-approved for a basic FHA loan
2. Start looking at homes.
3. If you find one in need of repair, obtain bids for the required repair work
4. Ask your Realtor "Will the house appraise for the purchase price plus repair cost when repairs are completed?"

If No: Pass on the house and find something else

If Yes:

• Submit your purchase offer
• Once your offer is accepted, contact us to guide you the rest of the way.

Cambria Mortgage - St Paul Office
33 Wentworth Ave E, Suite 290
Saint Paul, MN 55118
Office (651) 552-3681    Fax (651) 994-6425
E-Mail: joe@JoeMetzler.com

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33 Wentworth Ave E - St Paul, MN 55118 - NMLS 274132
Equal Housing Lender © 2012 - 2023 - Joe Metzler for Cambria Mortgage

License Information
Cambria Mortgage. Nationwide Mortgage Licensing System and Registry (NMLS) # 322798 Saint Paul Branch - NMLS # 1888858. Joe Metzler, Licensed Mortgage Loan Originator NMLS #  274132. Minnesota Lic/Reg #: MN-MLO-274132. Wisconsin Lic/Reg #: 11418. NOTE: We offer USDA, VA and FHA Loans. While we are an approved lender, we are not part of HUD, FHA, The United States Government, or the Department of Veteran Affairs. We are not acting on behalf of, or under the direction of HUD/FHA or the Federal Government. FHA and VA do not lend directly to the public, only through approved lending institutions like Cambria Mortgage.