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Writing an offer with 203k financing in Oakland Alameda, San Francisco
Oakland Ca., It’s no secret we’ve discussed this before, there are some properties on the market with deferred maintenance right? Well it can be tricky for first time buyers to get into these well priced properties due to financing restrictions. That’s why more and more we are seeing 203K offers when necessary, a loan that actually allows you to finance the construction of the property after the close of escrow. Now the big questions is “How do you write an offer on a 203K property?”
Put 203K in the Purchase Contract – Now this is not legal advice on how to write a purchase contract, however a good rule of thumb would be to fill out your contract like you would a normal FHA contract and then write in “203K renovation for FHA”.
Provide for Longer Contingency Periods – A 203K takes a little bit of time, allow for enough time to get the Home Inspection AND a Contractor Bid with the HUID consultant present. Then, once construction is finalized we can submit to underwriting and order appraisal.
Provide Longer Appraisal Contingency than You Are Used To – 203K Appraisals ... more
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