FHA 203k Feasibility Analysis - Oakland
Mike young from Fairfield CA knows about FHA 203K loans. I only wish more first time home buyers with a limited budget would know about these as well. It’s the perfect instrument to buy that well priced fixer upper or foreclosure home that needs some work that the buyers wouldn’t normally be able to afford.
Well there is no rest for the Wicked as my Mom used to say. It's Sunday and we are relaxing and, of course, the client needs it this weekend. lol
All kidding aside as much as we like to enjoy our Weekends there are many times our clients just can't affort to miss time during the working week so yes, we work weekends when necessary.
Today seems like we have an interesting in Oakland with an Edwardian tri-color home.
Purpose of a feasibility analysis - as you may know we are attempting to get a renovation estimate so the buyer knows what it might take to bring this property up to the FHA MPS (Minimum Property Standards) of liveability. That means nothing more typically than taking care of the health, safety and "of necessity" items.
What a Feasibility is NOT - it is not to take into account all of the nice things a buyer might want to add above and beyond the minimum property standards. It can be that but not if you are looking for a guide to a purchase offer. The seller likely isn't interested in what YOU might want to do to the home but more "what will it take to get my home up to a salable safe condition" so an FHA loan can be made.
This will become a 203k loan so the work all happens after the close of escrow on the borrower's dime. This is a tool used to help the buyer and their agent arrive at a fair offer that should be accepted and notify the seller, quite often a bank, of the deficiencies that they may not have been aware of and now they are aware. It is a very effective tool. Did I say they are now aware of those deficiencies and should be disclosing them to the next potential buyer as well.
This typically takes about a half hour at the site, and is turned in the same day or the next day. Many times a seller will get a feasibility done so they know and can provide info to a prospective buyer of the cost to cure the deficiencies on this home.
Mike Young, 203k Team Leader
With offices coast to coast and HQ now at 1500 Oliver Road, Suite K-228 Fairfield, CA 94534 - 1.707.812.7668
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