I had lunch with one of my lenders today who shared a very neat program with my Fishers Real Estate Team. There have been multiple times when I have been with a buyer who loves a home but there is too much work and their cash flow will not allow them to buy the home and fix it up. These are often bank owned homes or HUD homes, but not always. Sometimes it is just someone who has let the maintenance go on their home. For these types of buyers, there is great news for you. You can use the government's money to fix up your home!
FHA has a program called 203K Streamlinefor loan amounts up to $271,000. You can use $35,000 of that money to upgrade or make repairs to the home. The 203K program is a modification to the current FHA 203K program. The types of repairs that are eligible include the usual suspects such as roof, HVAC, plumbing, electrical and exterior siding. But, it can also include worn carpet, basement finishing or appliances. You must have a licensed general contractor quote and perform the work and it must begin within 30 days of close on your new home and be completed within 180 days of close. The contractor will receive 50% of the funds at the closing and the other 50% when the work is completed.
FHA lending typically requires a credit score of 580; although some exceptions do exist. Currently the down payment required on an FHA Loan is 3.0%; but beginning 1/1/09 it will increase to 3.5% so now would be a great time to find a Fishers home and get approved for this program. If you would like more information on the 203K Streamline program; please let this Fishers Real Estate agent know and I'll put you in touch with my lender.
Cindy "in Indy" Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
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