Home buyers and home sellers across America have a friend and ally they may not be aware of. For many buyers the “perfect” location may not be the “perfect” home. Due to the recent downturn in the economy, which many agree will level out this year in spite of Congress’s best efforts to destroy it, there are many homes for sale either by private owners or lenders who have taken?possession.
Real estate owned is the common term for bank owned properties which many investors are well familiar with as REOs. The foreclosing lender rarely, if ever, will perform any upgrades or maintenance to the average home before putting it on the market. For buyers with 20% down and plenty of cash to cure the issue this is not a major concern. However with the increasing number of buyers using FHA for their fairly liberal 3.5% down payment this is an issue.
FHA guidelines do not allow a property to be purchased as is where the property needs repairs. Cold damaged plumbing or out of code is a major concern for FHA buyers.
Meet the FHA 203k Streamlined Rehab/Purchase Loan
The key asset of the FHA 203k Streamlined is that it allows the buyer to finance in the cost of repairs up to $35,000. The loan includes the sale price plus the rehab and the total cannot exceed the FHA maximum loan amount for the area in which the property is located.
Repairs covered by the FHA 203k Streamlined loan can include cosmetic repairs, improvements that do not involve structure (such as adding on a room), plumbing and electrical upgrades, and other repairs and improvements. They cannot include landscaping or additional living space.
Community Outreach Leader and Licensed Loan Officer NMLS ID 208452 - office address 2300 Windy Ridge, Atlanta GA, 30339— Ken Cook NMLS ID 208452