How to Buy a Fixer-Upper

How to buy a Fixer-Upper   

FHA 203(k) For Purchases

Real estate agents and home buyers are scrambling to adjust to today’s real estate market which is filled with foreclosed homes that have suffered from disrepair and neglect. Many banks that own these foreclosed properties are unwilling to repair them. As a result, many foreclosed properties do not qualify for traditional loan programs. FHA’s 203(k) loan program provides the funds necessary for both the purchase AND the renovation of a home.

Loan Program Advantages:

• Streamline Program, Limited Repairs Up to $35,000
• Low Down Payment
• Credit Scores as Low as 620
• Competitive Fixed Rate Terms
• 1-4 Owner Occupied Homes - Maximum Loans up to $281,000

One of the biggest misconceptions about a 203(k) loan is that obtaining it is a hard and time consuming process. Although there is a bit more involved in completing a streamline 203(k) purchase, most loans can still be closed within 30-60 days from start to finish. It is preferred that a 203(k) loan be written on a 60 day contract; however, 45 days is generally a sufficient time to close these loans.

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