Question:
With so many foreclosures and houses needing repairs and upgrades on the market, what is the best way for my clients to purchase and improve these kinds of properties?
Thanks Very Much.
Answer:
Think 203(k). FHA is very much back in the picture with very high maximum mortgage amounts and very relaxed appraisal guidelines. The 203(k) program is the right program at the right time. The mortgage combines the funds to purchase along with the funds to repair or upgrade the property. Everyone qualifies, you don't have to be a first time home buyer and anyone who would qualify for a standard mortgage will qualify for an FHA 203(k) loan. There is only a minimum of $5000.00 in repairs needed to utilize the program and the ceiling is the maximum loan amount for the area the house is located in. Have a deal that may be in trouble because the house needs a new roof, heating system, upgraded kitchen or bathrooms, exterior siding, etc.? This is the program that will solve that problem. You can also use the program to upgrade the house to be more energy efficient and save the buyer money at the same time. You can upgrade the heating system to a high efficiency system and increase the amount of insulation in the home. With high energy prices the buyer will be paying less out of pocket money at the end of the month then they would have with the old system.
As 203(k) certified consultants we inspect the house and prepare all the paper work needed to proceed with the program. We have also partnered with lenders that are very experienced in quickly closing these loans.
Don't think of the program only for foreclosed or damaged houses only. To qualify the house only has to be one year old and in need of repairs or upgrades.
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