FHA 203K For Foreclosures
There is no doubt foreclosures are driving our market in New Hampshire. There are 20 Government owned properties by Dept. of Housing and Urban Development (HUD) for sale in New Hampshire. Fannie Mae has 375 properties in New Hampshire for sale. Bank of America has 164 properties for sale in New Hampshire. I could go on but I think you get the point.
Many of these properties are in move in condition and the majority of them are not or are in need of some repairs to bring them up to FHA standards for financing. The problem for buyers who are financing these properties or even properties that are not in foreclosure is insurability. If there are issues with the property that won't allow it to be insured, financing won't be available....or will it?
FHA offers the 203K program where buyers can have additional monies added to the purchase price for repairs and all wrapped into the mortgage. FHA financing qualifications have to be met and the total of the mortgage must be equal to or below the repaired value. Be aware the 3.5% down payment on the purchase price will increase to 3.5% of the total mortgage.
FHA 203K For Owner Occupied Properties
The FHA 203K program is not just for foreclosures. The program can be used for repairs, upgrades, and additions to all properties for sale. Buyers will need to get two estimates for the work to be done and can choose the contractor they wish to use. There will be a HUD consultant that approves the project and also provides the initial home inspection where any latent problems may be discovered.
FHA 203K Saves The Day
Interest rates are at the lowest levels in decades, current home prices are very reasonable, and the inventory of all homes for sale is very good. Buyers should be working with a lender and a Realtor to take advantage of this market and all the wonderful opportunities available today. And now you know that the property that you like has a solution for the problems it may have or the updates it needs.
About The Author: This blog is provided by Marty Patrizi a Realtor with Virtual Homes Real Estate. Marty can be reached at 603-781-4099 or via email: marty.patrizi@virtualhomes.com.
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