Frequently Asked Questions
For further information about these programs, please call or email our Mortgage Specialists. Marvel Ventures Mortgage, Inc. provides all of these programs and more.
Special Programs:
- What is the FHA $100 Downpayment HUD Repossessed Property Purchase?
- What is a The Section 203(k) Rehab loan?
- What is a Streamlined 203(k) Limited Repair Program?
- What is an FHA Reverse Mortgage Program?
- What is an FHA Streamline Refinance with/without an appraisal?
- What is a V.A. Interest Rate Reduction Loan?
- What is a VA Rehabilitation Loan?
- What are Fannie Mae and Freddie Mac Rehabilitation Loans?
- What is an FHASecure® Refinance Loan?
What is the FHA $100 Downpayment HUD Repossessed Property Purchase?
This is a Special HUD property Purchase loan program financed as an FHA loan. It offers the ability to own a home with a down payment of $100.00. Repairs can be financed into a 203k FHA rehab loan, or in fact, negotiated into the Purchase contract. Certain features must be present, to qualify for this program. They include, but are not limited to the following:
- Property must be owner occupied and loan can only be for the following types of structures: 1-4 Unit property, PUDs (Planned unit developments), Modular homes
- The maximum loan amount varies by county.
- The property must be chosen from the HUD list of foreclosed properties for sale.
- All loans require the Borrowers to make a $100 down payment. The standard FHA policy requiring that the Borrower(s) make a 3.5% down payment is not required for the FHA $100.00 HUD Repo program.
- Hud will assist with closing costs and even reasonable repairs, if so requested on the Purchase contract.
- CREDIT ALERT INTERACTIVE VOICE RESPONSE SYSTEM (CAIVR)
- All Borrower(s) must be screened using CAIVRS. FHA will not insure a loan if the Borrower(s) is currently delinquent on ANY unpaid federal debt, or has had a claim paid with in the previous three (3) years.
- Also all of your bills must current and paid on-time for the last 12 months; no bankruptcies for the last 24 months and no foreclosures in the last 36 months.
What is a The Section 203(k) Rehab loan?
- Section 203(k) program is used to rehabilitate properties. Section 203(k) financing parameters are used to assist borrowers manage the rehabilitation processing.
- The Section 203(k) program was designed to address the situation where a Borrower wants to purchase a house in need of repair or modernization. The Borrower usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. The Borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established.
What is a Streamlined 203(k) Limited Repair Program?
- FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. The requirements are less stringent than the regular 203k loan, and these loans close seamlessly with the regular purchase of the property.
What is an FHA Reverse Mortgage Program?
- These materials are not from HUD or FHA and were not approved by HUD or a government agency.
- Homeowners, 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD's reverse mortgage program. The program allows homeowners to borrow against the equity in their homes.
- Mortgagees are required to perform a thorough financial assessment of prospective borrowers.
- Homeowners can receive payments in a lump sum, on a monthly basis (for a fixed term or for as long as they live in the home), or on an occasional basis as a line of credit. Homeowners whose circumstances change can restructure their payment options.
- Unlike ordinary home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home. Lenders recover their principal, plus interest, when the home is sold. The remaining value of the home goes to the homeowner or to his or her survivors. The HECM reverse mortgage is a loan that must be repaid when the borrower dies, sells the home, moves out of the house, or defaults on other obligations such as insurance or taxes.
- These materials are not from HUD or FHA and were not approved by HUD or a government agency.
What is an FHA Streamline Refinance with/without an appraisal?
- FHA "streamline" refers only to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are:
- The mortgage to be refinanced must already be FHA insured
- The mortgage to be refinanced should be current (not delinquent).
- The refinance is to result in a lowering of the borrower's monthly principal and interest payments
- No cash may be taken out on mortgages refinanced using the streamline refinance process
- Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal.
- Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount. Investment properties may only be refinanced without an appraisal.
What is a V.A. Interest Rate Reduction Loan?
- Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal
What is a VA Rehabilitation Loan?
- There are several ways to provide rehab money and each one is user specific. Thus each loan is tailored to the borrower’s needs
What are Fannie Mae and Freddie Mac Rehabilitation Loans?
- The Government National Mortgage Association (GNMA) permits the Section 203(k) mortgage to be placed in both GNMA I and II pools with Section 203(b) mortgages. GNMA accepts the 203(k) mortgage once it has been endorsed by HUD. The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) will also purchase a Section 203(k) first mortgage.
- There is a minimum $5,000 requirement for the eligible improvements on the existing structure on the property. Minor or cosmetic repairs by themselves are unacceptable; however, they may be added to the minimum requirement. For a more complete list go to the following website: www.nhl.gov/offices/hsg/sfh/203k/faqs203k.cfm
- Fannie Mae and Freddie Mac have their own versions of Rehab Loans. These loans, actually, allow investor property rehab financing. At MVMI, we specialize in investor loans, a highly select area of expertise. Note: Not all Lenders offer these loans. Contact us today for an and thorough analysis of your situation.
What is an FHASecure® Refinance Loan?
- The FHA Secure loan program is designed to help home owners who took out sub-prime adjustable rate mortgages and other borrowers facing foreclosure due to an adjustable rate mortgage. Many home owners are finding the new increased mortgage payments difficult or impossible to pay every month and many home owners are now sliding towards foreclosure. The FHA secure program would allow these home owners to refinance their adjustable rate mortgage into a more stable fixed rate mortgage and include up to 6 months past due mortgage payments into the loan balance. However the home owners must prove that the payment increase from the adjustable rate mortgage was the cause of their delinquent mortgage payments and not lack of financial responsibility. FHA will also permit back taxes and insurance to be included into the new loan amount. No cash out refinances are allowed with FHA secure.
- This is limited time program.
Remember, any further information or detailed information about these programs, please call our mortgage specialists at Marvel Ventures Mortgage, Inc. Marvel Ventures Mortgage, Inc. provides all of these programs and much more! Call or email us today, and get started on the thrilling journey towards owning your own home!