Arden & Carmichael Are Great Areas To Use FHA 203K Financing and Energy Efficient Mortgage
What’s a FHA 203K loan and Energy Efficient Mortgage (EEM)? Consumers, and sometimes agents, wonder what these loans are, and how they can be used. As I work predominantly in more mature neighborhoods of Sacramento, including Midtown, East Sac, and Arden/Carmichael, where homes are typically anywhere from 100 to 60 years old, these types of financing have become very useful tools to help buyers and sellers alike.
The FHA 203K Loan, or it’s less invasive cousin, the FHA Streamline K Loan, provide dollars to buyers, to make a “Dog”, into a “Diamond”. With each loan, the maximum dollar amounts differ, as do the allowable improvements, but can provide $35,000, or more, for kitchen, baths, flooring, popcorn ceilings, paint, etc., and all work is performed after closing. Although this loan does take a little longer to close, roughly 45 days, a seller who has a home that would not normally qualify for FHA financing due to condition, can now entertain an offer from a FHA buyer, who now has the opportunity to move into a heavily improved home, and finance the improvements to boot!
The Energy Efficient Mortgage can be used in conjunction with either the FHA 203K Loan, or the FHA Streamline K Loan, and gives buyers an additional $10,000 to perform energy efficient improvements. Allowable improvements include items such as dual pane windows, insulation, weather stripping, and HVAC, to name a few. Adding the Energy Efficient Mortgage is an incredible enhancement to the FHA 203K and FHA Streamline K Loans, giving the buyer an opportunity to finance $45,000, or more, in improvements for their new home, as well as potentially saving them money in energy costs…WHAT A DEAL!!!
Now, there are some in and outs to getting these loans done, and the importance of working with a Sacramento Realtor who understands them, as well as a loan officer who knows how to get the loan done, and a contractor who knows how to write the bids for the bank’s approval is paramount to avoiding a Real Estate Migraine! It just so happens that I have the experience, and the team of professionals, to get a FHA 203K, FHA Streamline K, and/or Energy Efficient Mortgage, done in the Sacramento area.
If you are interested in learning more about these loans, or you need a real estate professional to guide you through, email me at [email protected], or call me at 916,359.9549.