mortgages :: FHA 203(k)

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.