When I refer to the FHA 203K Loan, I am referring to the FHA Streamlined 203(k) Limited Repair Program.  It is for improvements and repairs that don’t require structural improvements.  It is not for total renovation of a property but for repairs not totaling more than ,000.  The FHA 203K Rehab Loan did have a minimun of ,000 costs of repairs, but that has been eliminated.

There are many benefits for using a FHA 203K Rehab Loan for improvements to a house you are planning on buying.  Also, you can use this FHA Loan Program to refinance your existing mortgage and do repairs and improvement to your existing home.

Some of the benefits of a FHA 203K Streamlined Rehab Loan Are:

1.  The borrower can take out just one mortgage to cover both the purchase of the property and the cost of upgrades.  This loan can be amortized over 30 years, unlike a conventional rehab loan that has a shorter amortization period and higher interest rates.

2.  Like I said before that there is no minimum cost for repairs.  You could use it only to put in an energy-efficient furnace.

3.  There are many different repairs and improvements you can use the loan for.  You can read an article on the list of improvements by clicking on the links at the bottom of this article.

4.  This is not a government loan, it is a FHA insured loan.  There are a lot of FHA Approved Lenders across the country.  Because it is insured by FHA, the FHA Approved Lenders are more willing the make the FHA 203K Rehab Loan.

5.  On of the biggest benefit is the low down payment of 3.5%.  Most conventional rehab loans require a 20% down payment.

6.  Lower interest rate.  Because FHA insures the loan, FHA Approved Lenders can make loans to people that don’t have perfect credit.  That doesn’t mean any one can get a loan, you still have to prove you can pay the loan back.

7.  The FHA 203K Streamline Loan eliminates the need for a consultant, engineers, plans, and consultant’s fees.  This speeds the process up and lowers the costs of the improvements.

As you can see if you are considering buying a home that need repairs or want to make improvements to your own home, the FHA 203K Rehab Loan could be just what you are looking for.

Palm Beach (Photo credit: Roozbeh Rokni)

The Boca Raton-based developer The Altman Cos. just announced plans for three new apartment communities in Broward and Palm Beach counties.

They are planning to build in Boynton Beach, Coconut Creek and Pembroke Pines, and Kendall, adding 1,100 units to the South Florida inventory.

Earlier this month, another developer announced plans to build nearly 400 luxury apartments in Coconut Creek.

And yesterday, another company said it will build 224 luxury units in Palm Beach Gardens.

According to Zillow, South Florida rental rates rose in January from a year ago while home values declined over the same period.

The Zillow Rent Index for Palm Beach, Broward and Miami-Dade counties was $1,579, up 6%. But Zillow’s Home Value Index was $138,100, off 2.2% from a year ago.

According to Stan Humphries, Zillow’s chief economist, Zillow’s rent report, released for the first time Tuesday, shows a burgeoning rental market across the nation – and ultimately that will be good news for still-sluggish home prices. Humphries said in a statement: “A thriving rental market will stimulate home sales as investors snap up low-priced inventory to convert to rentals. That, in turn, will lower the number of homes on the market, which will eventually help put a floor under the value of all homes.”

The event, from 1 p.m. to 8 p.m., is sponsored by the U.S. Treasury and Housing and Urban Development. For what to bring and other information, click here.

And homeowners who attend can also learn about a mediation program that might be able to help them even before a lender files for foreclosure.

The Collins Center for Public Policy will set up a booth at the event and make presentations throughout the day.

Click here for more details about this FREE program.

The year-end median price in Broward was $186,000, compared with $179,200 in 2010.

The number of homes for sale countywide declined sharply in 2011. Increased demand for fewer homes helped to stabilize prices, but real estate agents and analysts warn that the market may not hit bottom until 2013.

In Palm Beach County, the median price last year was $193,700, off 15% from 2010.

Meanwhile, sales soared in both counties as foreign investors and other cash buyers rushed to take advantage of prices last seen in 2002.

Broward had 12,817 existing home sales for the year, up 11% from 2010. Palm Beach County rose 24% to 11,900.

Home sales nationally last year increased slightly from 2010.

Lawrence Yun, chief economist for the National Association of Realtors, said in a statement that the nation’s housing market is slowly recovering from the downturn that began in 2006.

He concludes: “The pattern of home sales in recent months demonstrates a market in recovery. Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

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1. Buyers will be busy. Despite sluggish national numbers, South Florida sales were strong in 2011.  Furthermore,  economic conditions and consumer sentiment will continue to improve during this election year.
2. Foreclosures will increase. Analysts are concerned about the 1 million in “shadow inventory” — homes that ultimately will go on the market for sale because the owners are in default or foreclosure.
3. Prices will soften. More foreclosures will bring down prices across the board, but declines may be limited to 3 to 5%. Which means, values will stabilize.
4. Interest rates will remain low. Count on historically low mortgage rates for as long as it takes to get the economy back on track.
5. Short sales will increase. Banks appear more willing to let owners sell for less than they owe, helping to clear the glut of “underwater” mortgages.

*** And starting in 2013, homeowners will be taxed on the amount the lender forgives, meaning more homeowners will be motivated to do deals.

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It was the fifth consecutive week that the 30-year fixed loan was below 4.00%.

According to Freddie Mac, the average 30-year, fixed-rate mortgage declined from last week’s 3.95%. Average interest rates on 15-year, fixed rate home loans were also down slightly to 3.23%, after last week’s 3.24%  rate. A year ago, the interest rate on the 15-year loan was nearly a point higher at 4.13%.

Frank Nothaft, Freddie Mac vice president and chief economist, states: “Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement.”

According to Freddie Mac, total upfront costs this week for both the 30-year and 15-year, fixed-rate loans averaged .8% of the price of the home being bought. The buyers may also pay closing costs, which are not included in the survey.

However, many buyers won’t get Freddie Mac’s low average rates, Money magazine reported in its December issue. One of the reasons is that Freddie Mac’s low rates require high credit scores and down payments of 20% or more. Freddie Mac spokesman Wandler goes on further to add that Freddie Mac’s average low rates also require more upfront fees than what some consumers are used to paying.

Good news for “underwater” homeowners! Starting tomorrow, they can start submitting applications under a revised government program meant to make refinancing easier.

The Obama Administration announced this fall it’s making changes to the Home Affordable Refinance Program so more struggling homeowners can take advantage of it.

The government is doing away with a cap that prevented borrowers whose mortgages exceed 125% of the value of their homes from being eligible for the program. Other changes include reduced risk for lenders and lower fees for borrowers.

Furthermore, Fannie Mae now says it will allow some homeowners to refinance even if they’ve had a foreclosure in the past seven years.

Paton wishes more people knew about the program, saying it’s the best opportunity yet for homeowners to get out of underwater mortgages and refinance into 15-year loans without a huge hit to their monthly budgets.

According to research by Corelogic, the revamped program potentially could help tens of thousands of homeowners in South Florida who owe far more than their homes are worth. More than four out of 10 residential properties with a mortgage in Broward and Palm Beach counties are underwater.

While tomorrow is the official launch date nationwide, some lenders may not be prepared to accept applications right away.

Among the criteria homeowners must meet:

• They need to be current on their mortgage payments.

• The loans must be backed by Fannie Mae or Freddie Mac, the government-run companies that guarantee about half of all home loans nationwide.

• The loans must have been bought by Fannie or Freddie no later than May 31, 2009.

To find out if your loan is owned by Fannie, click here. To see if it’s owned by Freddie, click here.