As a foreclosure specialist, I have seen many properties that are in less than perfect condition but are substancially discounted, often 50% or more off the prices.
Buyers have been struggling with intense repairs being needed–How can they finance the home in the first place if it is in unliveable (aka, not FHA eligible) condition? An FHA 203k program can potentially a financial solution to these buyers.
Here’re excerpts from the FHA 203K program:
The FHA 203k renovation loan program provides funds for both the purchase and renovation of a home packaged into one mortgage loan. Once the purchase of the home is closed, renovation funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors.
HUD’s 203(k) program can help you overcome this obstacle by enabling you to borrow funds for the purchase or refinance of a property plus the cost of making the repairs and improvements in one mortgage. The FHA-insured 203(k) loan is provided through approved lenders nationwide and is available to owners who will occupy the home themselves.
FHA 203(k) Program details:
- The Standard 203k is intended for more complicated projects that involve structural changes, such as room additions, exterior grading and landscaping, or renovation that would prohibit you from occupying the residence.
- The Streamlined 203k is designed for less extensive improvements and for projects that will not exceed a total of $35,000 in renovation and related expenses. This version does not require the use of a consultant, architect, and engineer or as many inspections as the Standard 203k. As a result, when applicable, the Streamlined 203k generally becomes the simpler, less costly option.
I can show you the program in more details, email me today alan@i2realty.com.
