Have you ever heard about the FHA 203K loan? If you are thinking of purchasing a property and want to learn more about all of the different loan programs available, then you should add the FHA 203K program to your list.
Because there are so many REOs (bank-owned properties) and short sales on the market, there are many properties available to purchase that may be in need of some repairs. Nowadays, buyers who are not using conventional financing might this loan program—especially if the subject property is in need of some repairs.
As part of the FHA 203K program, buyers obtain bids for any repairs desired on the property prior to obtaining the loan. Then, the repair bids are submitted with the loan package and, if approved, the lender will allow the buyer additional funds in order to make the repairs. For example a buyer offers to purchase a condominium in Escondido for $120,000. He obtains bids for new appliances, cabinets and faucets; the bid totals $8700. This $8700 and then put on top of the loan amount and the buyer can use that money to pay to make necessary repairs. In this way, the buyers are obtaining a property that meets FHA inspection and appraisal specifications and is FHA compliant.
This loan program is a wonderful opportunity for buyers because there are so many distressed properties on the market at this time that ordinarily might not be approved for FHA financing. If you are interested in more information about loan programs and properties for sale in Escondido, San Marcos and beyond, don’t forget to contact one of the gifted agents at Broadpoint Properties.
Sidebar: This article provides an overarching description of the FHA 203k program. There are many nuances of this program. If you are interested in the FHA 203K program, speak with a lender to learn about all of the terms and conditions of the FHA 203K program.
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