Driving around virtually any area of greater Atlanta you will see homes sitting vacant and uncompleted. Many of these are homes which were foreclosed upon by the construction financing bank prior to being completed. When the lender was approached last year by the typical buyer the only hope they could offer them on such a purchase was a very high down payment loan with repair escrows. Even the banks who owned the properties were reluctant to lend on them even to the most qualified of buyers.
According to Kim Courtney, an FHA underwriter with AmericaHomeKey, Inc. and Marietta manager Jesse Kight, that particular lender can now make FHA insured 203k Streamlined loans to buyers wishing to purchase an unfinished property.
Prior to the announcement made today every property would have had to have been issued a certificate of occupancy referred to as a CO. No repair escrows would have been allowed to bring the property to CO status. With literally tens of thousands of properties in this condition around the nation and a concentration of them in the previously booming metro Atlanta area this announcement comes as a great surprise and of high interest to the many local, regional and national banks holding such property in their inventory.
Area lender Russell King has seen many properties in this condition come back under bank control and will be very pleased to make this opportunity known to the agents who are handling listings for his bank.
Qualifications for the FHA 203k Streamlined for the buyer are the same as for any other FHA single family loan as are the maximum loan amounts. Maximum loan amounts do vary by county and Mean Statistical Area.
The amount of completed cannot exceed the FHA guidelines for this type of purchase loan which allows the costs of completion to be financed in the one loan. Generally limited to thirty-five-thousand total they also carry a slightly higher interest rate than the standard FHA insured loan.