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The Mid-Island Mortgage FHA 203(k) Rehabilitation Loan
The
most important tool you'll have when renovating!
The FHA 203(k) loan provides borrowers
the resources to rehabilitate a home that may be in need of repair.
Whether it's the home that they currently occupy, or a "handyman
project", this single loan is used to pay for the purchase/refinance
and the cost of renovation! |
The advantages of a Mid-Island FHA 203(k) Rehabilitation Loan:
- Purchase a house in need of repair
or modernization.
- One loan, at a long term fixed rate,
to finance both the purchase price and the renovation of the
property.
- Provide
financing in your 1st mortgage for all repair/renovation
work you want done.
- No more need to use expensive credit
cards for repairs after you close.
The Mid-Island Mortgage Corp. Difference.
What separates Mid-Island Mortgage
Corp. from everyone else is our solid track record and proven stability
since 1959. Mid-Island Mortgage Corp. is your personal mortgage
banker, regardless of trends and market cycles. While many
of the new players to the home mortgage field have abandoned the
community, chasing the next "hot market" to take advantage
of, Mid-Island Mortgage Corp. is still happily serving you, your
family and your neighbors.
Our commitment to the thousands
seeking the dream of home ownership is one of the many reasons
we say "you always have a home with us!"
A brief history of the FHA:
Founded over 70 years ago as a part of the National
Housing Act of 1934, the FHA (Federal Housing Administration) was
created to address the housing needs caused and highlighted by
the Great Depression. Rampant foreclosures and a drastic drop
in the housing market caused by a catastrophic failure in the banking
system were addressed via comprehensive restricting of the federal
banking system.
The FHA was created with the goals of meeting
the needs of the American people by improving housing standards
and conditions, stabilizing of the housing market, and by insuring
mortgages. Prior to this act, most mortgages were under 10 years
in length with very high down payment requirements (about 50 percent
down) - well out of the reach of many Americans. The new regulation
in interest rates and more friendly payment terms allowed for greater
home ownership - increasing the market for single family homes
in the process.
In 1965, the FHA became a part of HUD (the Department
of Housing and Urban Development) and offers a wide range of housing
loans such as, adjustable rate mortgages, fixed rate mortgages,
energy efficient mortgages, graduated payment mortgages, mortgages
for condominium units, growing equity mortgages.The FHA has had a significant
role in the production of privately-owned apartments to house
the elderly, disabled and lower income. FHA's emergency financing
provided significant relief for cash-strapped properties during
the inflation and energy crisis of the 70's. The FHA was also
there during the 80's, steadying falling house prices - especially
in oil producing states where private mortgage insurance carriers
had pulled out. Perhaps the FHA's greatest impact is felt among
the metropolitan and ethnic minority populations - where the
percentage of FHA loans greatly outnumbers that of conventional
loans.
Looking forward, FHA is continuing to seek ways
to better serve the interests of the population. Addressing a need
for a safer alternative to risky mortgages, Assistant Secretary
for Housing - Federal Housing Commissioner Brian Montgomery called
for "a modernized and reinvigorated FHA". Proposed changes include;
higher loan limits - which would greatly increase the amount of
eligible property, a more flexible down payment structure - where
instead of a standard 3 percent down payment, borrowers would be
able to put down zero, one, two or even ten percent, and the streamlining
of regulatory "red tape" - increasing the efficiency of the
FHA loan process.
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