4 Facts you should know about the FHA 203k before you buy your first Miami Foreclosure.
Foreclosures are taking over our current real estate market nationwide. And most of these Miami foreclosures are not the Taj Mahal or the Caesar palace 65 percent of all current Miami foreclosures are in need of some type of repairs. The FHA (Federal Housing Administration) 203 K program is a primary program for the rehabilitation and repair of single family properties. Please note FHA does not lend money they insure the loans for the financial institutions that are approved such as Banks. If you are buying a Miami foreclosure for the very first type or applying for an FHA loan first time homebuyer program learn the 4 facts you can't afford not to know.
- 1. Requirements
Any property that is one to four units is eligible for the FHA program. Yes it means duplex triplex and fourplex can be bought with this program. The property needs to be appraised in two ways. 1st will be the AS is value. This value will determine the value of the home in its current condition without any repairs. 2nd will be the value after Rehabilitation. This value will determine the value of the home after all repairs are finished.
- 2. FHA 203k
Instead of buying the property firs t and then applying for a line of credit or a different loan to finance the purchase of the property the FHA 203 will finance the purchase with the cost of the rehab work. Let's assume you are buying 100,000 home that need 15,000 worth of work. With the FHA 203k program you will borrower the entire 115,000 with a fixed rate for 30 years. This can give you a great advantage on buying foreclosures that need repairs.
- 3. The construction payment
Due to the creativity of many scammers or fraudulent borrowers please be advice everything needs to be approved by the lender first. All construction cost estimates are only accepted by a licensed General Contractor with a breakdown of each item. The general contractor will be paid as agree in payments as the work is being completed.
- 4. Form partnership with non profit organization
The FHA 203k can and it has been used with many local and state agency to provide local housing to lower income borrowers.
Most Miami foreclosures and borrowers can qualify for the 203k program, my teachers used to always say knowledge is power. Know the programs available to you before you purchase your first Miami foreclosure. This is a declining market but it is also a market with great opportunity. To learn more on the FHA program click here. IF you are an investor looking to use the 203k program click here.
Ready to buy a Miami foreclosure Home? Contact Global Market Realty today. We have several Miami Foreclosures for sale in , Search the MLS for foreclosures in Miami . Do you want more information on a second home or a vacation home please contact us at 305 364-0037
Looking for a home in Miami ? You will find everything you want in the Miami area. The city of Miami is a great place to live and is served by the Dade county School District.
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