Tim Bradford - AMMCorp.net

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FORECLOSURES IN MARYLAND? WHAT ABOUT THE CONDITION? MEET THE FHA 203(k) Rehab Loan.

This is a Great Post by Lenn and the 203K loan is a great loan for Buyers that "Can See the Potential".   At the right purchase price a buyer can purchase some of these homes at Bargain Basement Prices and then Repair, Fix Up ir improve the home to meet the wants and needs of their family. 

Landscaping is mentioned as something that can be included, as a lender, before you try to include this I would suggest you discuss it with your lender because Luxury Items may not be allowable by all lenders. 

FORECLOSURES IN MARYLAND?  WHAT ABOUT THE CONDITION?  MEET THE FHA 203(k) Rehab Loan.

You've seen those foreclosures for sale in Maryland.  The question is, CAN YOU SEE THE POTENTIAL??  If you can imagine how you could make repairs and upgrade that home, you are a good candidate for the FHA 203(k) purchase financing. 

YOU CAN ROLL THE COST OF REPAIRS into your mortgage loan. 

Banks sell their foreclosed properties "AS IS" and will seldom make any repairs.  This is why the bank owned properties are often purchased"cash only" by investors with cash to buy the homes outright and then do the "fixing up" after settlement.  Investors have benefited greatly by getting good prices on bank owned homes. 

Carpenter

YOU CAN BENEFIT BY BUYING A "FIXER-UPPER" TOO with an FHA 203(k) financed rehab purchase. 

SOME IMPORTANT POINTS ABOUT THE FHA 201(k) LOAN:

  • You can combine the mortgage and home improvement into one fixed-rate loan.
  • No need for a second mortgage.
  • Sellers are often more willing to negotiate purchase price whan they can sell "as is".

THE STEPS TO BUYING A HOME WITH 203(f) financing are simple:

  • Negotiate the lowest price for the property.
  • Add the repair cost estimate.
  • Get appraisal for "After - Repaired Value"
  • Close on your purchase/loan
  • Make repairs and the contractor gets paid from the repair escrow held by the lender.

REPAIRS THAT ARE OFTEN INCLUDED IN AN FHA 201(k) REPAIR LOAN.

New Kitchen, Updated Bathrooms, Landscaping, Paint, Carpet or Hardwood Flooring, Lighting, Plumbing, Appliances, Energy Efficient Upgrades to appliances, Windows, Fencing, Roofs, and more, even Room Additions and Garage Additions.

  Before Home  Home Repair

WE CAN HELP?  Lenn

Homefinders.com will help you find a wonderful home with potential for good value after repairs.  We will then coordinate the purchase contract, mortgage financing and repairs. 

For more information, contact Lenn Harley, Broker, Homefinders.com, 800-711-7988.


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Tim Bradford
Ohio Mortgage Banker LO.007173.000/ NMLS 250013
Cell: 216.324.8113 Anytime
www.GetAMortgageNow.com or www.Go2Apply.com
www.OhioHomePath.com or www.OhioRuralHomeLoans.com

Serving the Ohio Realtors and Home Buyers and Home Owners
Comment balloon 2 commentsTim Bradford • November 10 2010 01:51PM

Comments

Hi Tim -- Good info here.  You did a fabulous job as the loan officer for a buyer of mine this year who did extensive renovations with a FHA 203(k) loan.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) almost 7 years ago

Chris, Thanks for the kind words.  It was great working with you on the 203k.   

Posted by Tim Bradford, NMLS 250013 almost 7 years ago

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