Henderson, NV - Many homebuyers are up against lots of competition from other buyers on the homes they like; the toughest competition are the cash buyers. With an FHA 203(k), a buyer can bid on a home that would otherwise not qualify for FHA financing and probably have less competition relative to other bidders.
The FHA 203(k) has two versions, the regular version which allows for major renovations including tearing the house down and rebuilding it and the streamline version or the "baby k" as it is sometimes called. The streamlined version allows for repairs up to $35,000 with basically no structural repairs - cosmetic only. This is a great loan for a home that needs new cabinets, appliances, sinks, toilets, paint and flooring. It's also a great way for a buyer to customize the home to their liking.
If you have made lots of offers that haven't been accepted or if you just want to make an offer on a house that probably won't have lots of other bidders and will allow you the opportunity to customize it to your liking, the FHA 203(k) and the streamline version may be the way to go. The work needs to be done by a licensed contractor but the loan application process is virtually the same as a normal FHA 203(b) loan with the exception of submitting a contractor's bid. Once the loan is closed and the work is complete, the contractor is paid and the loan looks and feels like every other FHA loan to the borrower except that there is lots of great new stuff in the house.
Feel free to leave questions or comments regarding this great loan. For solutions to a dwindling inventory or for those who have submitted lots of bids and lost or for those who just want to be able to customize their home, the FHA 203(k) loan is a great solution for Las Vegas home buyers.