HOUSTON, Jan. 7, 2013 /PRNewswire/ -- Envoy Mortgage, a full-service mortgage banking firm operating retail branch locations across the United States, and currently originating mortgage loans in more than 48 states, has expanded its FHA 203(k) loan product offerings to include a full 203(k) loan option, which gives borrowers an unrestricted window to cover the costs of renovation and repair on a home purchase—limited only by area FHA loan limits that vary from market to market. The renovation and repair costs are rolled into one FHA 203(k) mortgage.
Envoy already has been offering a streamline 203(k) product, in which borrowers can combine the purchase price of a home, plus up to $35,000 for renovation and repair costs, into a single mortgage transaction. The new full 203(k) product gives borrowers the option to devote more funds for repair and renovations, which are rolled into the mortgage amount.
"The U.S. real estate market continues to have a high inventory of distressed properties, which include foreclosures and REOs (bank-owned homes) that are a result of the economic downturn," said Suzanne Schakett, senior vice president of builder products in Envoy Mortgage's National Builder Division. "The full 203(k) loan is a construction-related product that essentially benefits everyone involved in real estate today."
Schakett pointed out, "For borrowers, it provides opportunities to take advantage of favorable prices on existing homes and to be able to customize homes to their specifications. For real estate agents, the 203(k) products provide a way to sell distressed properties 'as is.' And for builders who have expanded their business to include renovations, these products provide much-needed financing for their buyers."
The full 203(k) FHA loan augments Envoy Mortgage's suite of products that fall under its National Builder Division umbrella. Through either the streamline or full 203(k) loan product, a borrower can purchase an existing property, roll in costs of renovation and repair into the final loan amount, close on the property "as is," and then begin the repairs.
The 203(k) products are FHA-insured loans. Borrowers can purchase properties under essentially similar guidelines as the FHA 203(b), which allow most to qualify with a 3.5 percent down payment, regardless of the costs for renovation and repair. FHA loan limits vary from market to market, reflecting the cost of housing in each market.
"These loan products stimulate affordable housing and the economy by encouraging sales of distressed properties, rehabilitating neighborhoods and expanding the buyer pool to FHA-qualified families," Schakett said. "Because FHA 203(k) products can be slightly more complex than an FHA 203(b) loan, Envoy's loan officers are well-trained as experts to effectively help borrowers find the product that meets their needs based on the property condition and their financial profile."
For more information on these products or Envoy's National Builder Division, please contact Suzanne Schakett at (713) 993-4479 or by email at SSchakett@EnvoyMortgage.com.
About Envoy Mortgage
Envoy Mortgage is a full-service mortgage banking firm headquartered in Houston, TX that operates a network of retail branch locations across the U.S., currently originating in 48 states with several more pending. The branches offer a full menu of loan products and knowledge and expertise for all areas of the residential mortgage lending industry. Envoy's technology enables the company to maintain a completely paperless, in-house origination process, reducing costs and improving efficiencies. For more information, visit www.EnvoyMortgage.com.
SOURCE Envoy Mortgage