Looking for a loan for a fixer-upper? Maybe it's time to look at a 203 K loan.

If you been involved in the mortgage business for a couple of days, you've likely heard a nightmare story of a loan falling apart due to some construction related issue. I personally had a lender deny one of my client's loans because they did not have a railing on their back steps (note that there were two steps). A house that's missing floor coverings, plumbing items, or lighting fixtures will not likely fly under the scrutiny of many underwriters in today's environment. This makes sense considering that they need to compare your home to other recent sales which probably did have working toilets and heat. So, what options do you have to purchase a home that needs some TLC? A FHA 203K loan might be the right place to start. These loans are designed for the rehabilitation of single family homes where consumers are able to obtain one single mortgage at a long term fixed interest rate. The mortgage is based upon the projected home value once the rehab work is complete (also taking into account the cost of the work that is needed in the remodel).

203K rehabilitation loans can only be used on 1 to 4 unit primary residences (sorry investors) and the homes have to be over a year old. In other words, you cannot buy a newly constructed home and dress it up even more using FHAs program (note that HUD does not deem "luxury items" eligible). I could go on and on regarding the details of the program but there is a great overview on HUD's web site.

I know many mortgage professionals who try to steer clear of 203K loans because, 1) they've never done one and they seem complicated and, 2) they don't think that payoff is worth the effort. Therefore you may want to seek out lenders and brokers who are actively broadcasting that they do 203K loans such as American Financial Resources (NMLS#2826). I just did a search for "203K loans" in Google and most of the results are for web sites designed by publishers who are looking to generate leads or adsense revenue. 203K's loans might be the perfect fit for buyers in need of some capital to make repairs. They just need to be prepared to spend some time researching companies who actually know what they are doing.

Mortgage Rate Update - Sampling of Texas Mortgage Rates

Mortgage rates remained fairly steady over the past week on the heels of mixed economic and housing market news. Freddie Mac noted that the 30 year fixed mortgage rate average inched up a hair moving from 4.51% to 4.52% with .7 points. The 15 year fixed rate average also moved up 0.01% to 3.66% with .7 points. The 5 year treasury indexed ARM average moved in the opposite direction falling from 3.29% down to 3.27% with 0.5 points.

Below is a snapshot of current Texas mortgage rates and closing costs pulled from ForTheBestRate.com this afternoon. Please note that mortgage rates are subject to change without notice. Please visit the site for the criteria used in the survey and connect with the lenders and brokers for customized quotes.

30 Year  Fixed Mortgage Rates (Zero Points)
Amerisave - 4.500% Note Rate - $1995 Fees in APR - 4.586% APR
Quicken Loans - 4.750% Note Rate - $2053 Fees in APR - 4.840% APR
EverBank - 4.375% Note Rate - $752 Fees in APR - 4.407% APR
Aurora Bank - 4.625% Note Rate - $757 Fees in APR - 4.658% APR

15 Year  Fixed Mortgage Rates (Zero Points)
Amerisave - 3.500% Note Rate - $1995 Fees in APR - 3.646% APR
Quicken Loans - 3.875% Note Rate - $2303 Fees in APR - 4.046% APR
EverBank - 3.750% Note Rate - $752 Fees in APR - 4.805% APR
Aurora Bank - 3.500% Note Rate - $757 Fees in APR - 3.555% APR

We spoke to Kelly Decker, who manages the Decker Group Team and serves the greater Dallas marketplace, about the current rate environment. "We had noticed a minor slowdown compared to last month but much of that was due to the days surrounding the weekend of the 4th." He continued, "Purchase demand has been growing and people are still actively looking to capitalize on refinancing opportunities. Overall, things look good."

If you are searching for some of the lowest mortgage rates in the marketplace, be sure to spend a few minutes comparing interest rates, closing cost, and APR information at ForTheBestRate.com.

Mortgage Rates Fall on Employment News - CT Mortgage Rate Snapshot

Freddie Mac's weekly mortgage rate survey was released earlier this morning which indicated interest rates fell on the heels of a lack luster jobs report. The 30 year fixed mortgage rate national average moved from 4.60% to 4.51% with .7 points. The 15 year mortgage rate average slid from 3.75% to 3.65% with .6 points. Frank Nothaft, Freddie Mac VP and Chief Economist, noted that "Long-term bond yields and mortgage rates fell this week following a weak employment report. The economy added 18,000 jobs in June, well below the market consensus forecast, and the unemployment rate rose to 9.2 percent, the highest since December 2010. In addition, employee wages stagnated. These factors may lead to less consumer spending, which in turn, reduces the threat of inflation in the near term."

On the bright side, mortgage rates remain extremely attractive. Below is a snapshot from current mortgage rates from various lenders and brokers serving Connecticut listed on ForTheBestRate.com today. Please note that rates and fees are subject to change without notice. Please contact the various mortgage companies directly for customized quotes.

30 Year Rates
Quicken Loans - 4.625% Note Rate - 0 Points - $2,303 Fees in APR - 4.725% APR
Integrity Home Loans - 4.375% Note Rate - 1 Point - $0 Fees in APR - 4.46% APR
Horizon Financial - 4.375% Note Rate - 0 Points - $495 Fees in APR - 4.396% APR
Nationwide Advantage Mtge Co. - 4.500% Note Rate - 0 Points - $1412 Fees in APR - 4.561% APR

15 Year Rates
Quicken Loans - 3.875% Note Rate - 0 Points - $1553 Fees in APR - 3.990% APR
Integrity Home Loans - 3.750% Note Rate - 1 Point - $0 Fees in APR - 3.898% APR
Horizon Financial - 3.625% Note Rate - 0 Points - $495 Fees in APR - 3.661% APR
Nationwide Advantage Mtge Co. - 3.750% Note Rate - 0 Points - $1412 Fees in APR - 3.854% APR

7 Year Adjustable Mortgage Rates
Horizon Financial - 3.375% Note Rate - 0 Points - $495 Fees in APR - 3.395% APR
EverBank - 3.500% Note Rate - 0 Points - $652 Fees in APR - 3.526% APR
Loan Depot - 3.250% Note Rate - 0 Points - $1595 Fees in APR - 3.314% APR
Lending Tree Loans - 3.625% Note Rate - 1.5 Points - $1500Fees in APR - 3.790% APR