CAN FHA HELP ME SELL MY HOME EVEN THOUGH IT NEEDS UPDATING?

One of the most exciting opportunities for homebuyers today is Foreclosures and Short Sales. In my market you can typically pick-up a home for a deep discount if you look at these properties. The big problem is that these properties normally need work and most people do not have the money to repair them out of pocket.

Back in 2005 FHA saw this problem and developed the 203k( Streamline) limited repair program. This loan permits homebuyers and those refinancing to borrow up to an additional $35,000 into their mortgage to improve or upgrade their home.

The following is a list of rules that apply:

1. Purchase or Refinance of 1 to 4 units properties.
2. Must be owner occupied.
3. Property must be at least 1 year old.
4. Total loan amount cannot exceed FHA limits.
5. Landscaping not allowed.
6. Cannot be used to repair structual damage.
7. 2 Appraisals are required.

The following is a list of common 203k improvements:

1. Kitchen & Bathrooms.
2. Decks & Patios.
3. Flooring.
4. Basement finishing.
5. Roofs.
6. Painting.
7. Home Theaters.
8. Handicap Accessibility.
9. HVAC systems.
10. Appliances.

By using this program it creates alot of wins. The buyer gets a great deal on a home that is tailored to suit their needs. It employees the contractor industry. If it is a Short Sale it keeps the sellers from going into Foreclosure. If it is a Foreclosure it helps minimize the banks losses. Most importantly it helps increase the Neiborhoods property value. Remember If you are looking for a deal on a property that you can make your own this is your program.