The FHA 203K Loan: If you are thinking of buying a bank-owned property and it needs repairs, this loan may be for you.
If you are a first-time home buyer in Tempe and are considering taking advantage of the great opportunities available with short sales and bank-owned properties, this may be a program for you. Sometimes these Tempe properties are in very good condition. However, often the Tempe properties will need some work in order to bring them up to an acceptable condition for the new buyer and the lender. The FHA 203K or the FHA Streamlined 203K Repair loans are for home buyers considering buying a Tempe property in need of considerable repair. These loans will allow buyers to actually build the costs of these repairs into the financing of the home purchase.
Here are the basics you need to know about the program:
You can use the FHA 203K loan for the purchase or refinance of a Tempe property and take into account the purchase price (or payoff in the case of a refinance) and then add in the cost of repairs to create your new loan balance. The repairs are then completed after the loan closes.
The property in Tempe must be appraised based on what the property will be worth after repairs. This value will then be used for a property value and the loan-to-value will be based on the new loan value.
Funds are kept in escrow and released as the work is completed. A general contractor is not needed, but the work must be completed by a licensed Tempe professional.
Eligible improvements include: repair/replacements of roofs/gutters, HVAC, plumbing, electrical, flooring, paint, appliances, patios, porches, driveways, windows, doors, septic systems and other common repairs. Landscaping and structural issues are ineligible. If you are considering buying a property in Tempe that needs repairs, this may be the loan for you.
If you are considering buying a property in Tempe that needs repairs, feel free to email me at email@example.com or you can reach by phone. I am happy to assist you in locating properties.
You may also contact one of our preferred Tempe lenders to find out more about the FHA 203K Loan Programs:
Joann Salatino, Mortgage Consultant
Christopher Holmes, Certified Mortgage Planner
Dan Heimann, Mortgage Professional
And, is this a new type of loan? If so, it might be worth saying so. If not, perhaps you add something about this being a little-known type of loan that you have discovered.