203K in Denver, What did you say?

I have been talking lots about the FHA 203K loan program recently.  Mostly because it facilitates the buying of the type of homes my buyers are looking for.  While having these conversations, it's amazing to me how many of people in the industry are unfamiliar with this loan product.  My lender jokingly told me today that people refer to the 203K loan as how their house can help them retire.  Well, not quite.

So, what is the 203K loan program?  It is an FHA loan program that allows buyers to include home improvement costs into their 30 year mortgage.  I think this is one of the greatest loan programs available today because it allows buyers options and control.  It allows buyers to make their mark.

If you're interested in learning more about this loan program, check out this website:

http://www.colorado203klender.com/

Here's a scenario I recently worked through with some buyers:

A young, growing family was looking for a home in an established, suburban neighborhood filled with homes built in the 1970's.  Their max price was $450,000.  We were finding a few homes that met their needs and stayed within their price range, but this was a highly desirable neighborhood so they needed to act fast when they found the house of their dreams.  We found one which had been significantly updated, priced near $450,000.  They decided to write an offer.  The house went under contract before their offer was ever submitted.  They were frustrated!

We looked back upon the homes that were still on the market in the neighborhood.  There was one floor plan they liked most, but the home needed significant improvements.  ****That's when the bells went off.****  This home was priced well below $450,000.  They could purchase this home in it's current condition and make the updates of their choice and still have a mortgage payment they could afford.  And that's exactly what they did. 

They were under contract for 45 days in which time they hired a general contractor, and had numerous meetings at the property with the contractor.  All the work on the house was completed 30 days after they had purchased the property.  They couldn't be happier.

I think making a home your own is the most beautiful part of homeownership!