One of the realities with these distressed properties, is the homes often are in the need of repair and renovation. It seems like many buyers these days, no matter what the price range, want their new home to be move-in ready, so they’ll shy away from the short sales or bank owned homes.
However, the FHA 203K Home Purchase & Renovation Program is an outstanding solution to this dilemma. A buyer could acquire an undermarket deal on a distressed property. Use a 203k loan to purchase the property, do the renovations, and have the expenses built into the mortgage. This way the buyer doesn’t have to come up with cash after the closing to foot all the renovation costs.
The 203K appeals to all sorts of potential buyers from first time home buyers to occupant investors to buyers who need a home specialized for their needs.
Depending on what type of 203K loan (Standard or Streamline) you need, renovations could go from simply needing new kitchen appliances or flooring to total renovations requiring structural work.
The FHA 203K Loan is perfect for 1st time home buyers who don’t have a perfect credit or a large downpayment. You can put as little as 3.5% down.I recently completed a comprehensive training in the use of the U.S. Government’s FHA Home Purchase and Renovation Loan program. With this designation, I became a member of REbuildUSA, a nationwide organization of real estate, lending, and home improvement professionals working in partnership with Lowe’s.
With the designation, I am able to provide professional guidance to those who want a great home, in a great neighborhood, and renovated to meet their needs, tastes, and comforts.
For more detailed information and/or have any questions on the 203K process or want a list of bank owned homes currently on the market in Bergen County, New Jersey, CLICK HERE[