FHA Rehab Mortgages in Temecula

Filed under: 203K Rehab Loans, FHA Loans, The Temecula/San Diego Market

Think rehab loans aren’t available in today’s lending market?  Think again. 

With so many bank owned properties and distressed short sales on the real estate market today in Temecula and the greater Southern CA region, the FHA 203K program might be the most grossly underutilized financing tool out there. 

A few of the benefits of the FHA 203K program:

–          The same FHA underwriting guidelines as the standard purchase program, which are about the easiest in today’s tight market.

–          Still only requires 3.5% down payment.

–          The loan will finance 96.5% of the purchase price PLUS up to $35,000 for rehab for the streamlined program, much more for     the full 203K program.

–          Buyers get to hand pick all finishes from paint to flooring to appliances.

–          Under most circumstances, upon completion of the rehab buyers will have built equity into their purchase with the rehab…why should real estate investors make all the money? 

Many, me included, have always thought of rehab loans as a complete nightmare.  Underwriting taking forever, difficult contractor bid processes and a difficult process for getting contractors paid once the loan is finally in place.  This isn’t the case at all for 203K loans.  These are as simple as a rehab loan gets.  There is the normal process for underwriting the buyer’s income, employment, assets, etc.  At the same time that is happening we need a contractor to give us a complete bid for the work to be completed, which we hand over to the lender upon completion.  These loans will generally take up to 10 extra days to close vs. a normal purchase loan.  But we are often able to make them happen within the normal turn times as long as everyone is very diligent about getting requests fulfilled quickly.  

For home buyers with the vision to see through the current shabby condition of a distressed home for sale (and we know there are plenty of those in Temecula, Murrieta and San Diego), the 203K rehab loan may be just what you need to make one of the best investments of your life.  You can buy a “fixer” house and have the budget you need to completely repaint inside and out, put in all new appliances, redo all the flooring throughout and re-landscape the yard with new beautiful green sod and flowers.  For the more adventurous buyer, this might be the only path to a nicely upgraded home and some immediate equity in today’s market. 

With banks getting more and more skittish about selling even their most distressed real estate to investors, a rehab loan for the average home buyer might be just the cure.  Give me a call to discuss whether a 203K rehab loan is right for your upcoming home purchase in Temecula, Murrieta or San Diego.  We can work in concert with buyers and realtors to explore the possibilities.

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email info@franklinlc.com