203K Loans..A great way to buy distressed property and include the renovation costs in the purchase price!

Short sales, foreclosures, properties in dire need of updating….it is seems the market is flooded with properties that require work. Many buyers either do not have the time, skill or resources make a distressed property into a home. Homes that are “move-in ready” are often beyond the budget of the first time buyer who is financially sound enough to make a purchase. The answer is a FHA 203K which allows buyers to roll the cost of renovation into the loan. There are a few hoops to jump though in order to qualify. This is not a loan for the investor, but for the buyer who intends to live in the property. The contractors who do the work must be certified by the lender. There is a consultant who does an initial inspection of the property. This person determines the cost of the project and performs inspections along the way to make certain the property adheres to FHA standards which is a protection for the buyer. The renovation can be anything from updating a kitchen to taking the property down to the foundation and starting again. The interesting thing is that this can be used as a refinance vehicle for the homeowner who wants to update and stay in their home. Once again the key is the property has to be owner occupied and in the case of a refinance, there has to be sufficient equity and income to qualify the homeowner existing mortgage and the renovation cost. Exciting? You bet! It is the kind of news that makes you want to give your Realtor a call! Who do you know that doesn’t know about this buying opportunity? Who do you know that needs to move out of their two story home into a ranch? Who do you know that has been looking longingly at the foreclosure bargains but has been put off by the condition of the homes they have seen? Who do you know that should be giving me a call today? Might it be you?