Home buyers looking to take advantage of Little Egg Harbor short sales and the overall low housing prices should look into the FHA 203K streamlined loan program.
There are 411 homes for sale in Little Egg Harbor, and many will argue that Little Egg Harbor's home prices have reached bottom. There's a mix of move-in ready homes for sale, as well as many short sales and bank owned homes for sale in Little Egg Harbor.
Little Egg Harbor short sales and bank owned homes more often than not will require some repair. Repairs could be as minor as replacement of appliances and paint, or repairs could include substantial work requiring professional assistance.
You need not have that repair money in your pocket. The FHA Streamlined 203K loan program allows home buyers to borrow up to $35,000 for repairs. These repairs must be documented, and the appraisal must justify the expenditures, meaning the repaired home must be worth as much or more than the mortgage amount.
Like a standard FHA loan, the buyer is required to put 3.5% of the mortgaged amount down. So if you are buying a home in a standard purchase or buying a Little Egg Harbor short sale home for $90,000, and borrowing an additional $20,000 for repairs, you'd be required to put down 3.5% of the total, $110,000.
The Streamlined 203K loan allows for simple repairs that can be easily estimated and completed. Many are considered light cosmetic repairs, but some will require hiring a licensed contractor if it falls out of the borrower's area of expertise.
This is a partial list of repairs and improvements allowed under the FHA 203K Streamlined loan program; Roofs, gutters and downspouts, HVAC systems, plumbing and electrical, minor kitchen and bath remodels, flooring, interior and exterior painting, new windows and doors, energy efficient improvements, stabilizing or removing lead-based paint, decks, patios, porches, basement completion and the purchase of purchase of new kitchen appliances.
If you'd like more information on using the FHA 203K Streamlined loan program to purchase a Little Egg Harbor short sale or bank owned property contact Little Egg Harbor REALTOR® Laura Giannotta to learn more about the program and for the names of some local mortgage professionals that have the experience to get you through the 203K loan approval process.
Laura Giannotta
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