Sunday, August 8, 2010
Buying a bank owned home and dealing with Repairs
I recently passed the class for the designation of 203 K Specialist. What that means is I have been properly trained to help buyers get a loan that includes money to do repairs on the property they buy. I have been doing to this type of loan for years but now it is popular because of all the bank owned properties out there selling at below market values. If you are planning to purchase a property and live there you will qualify for this type of loan. This loan is not for investors or new construction. It is an FHA loan that, with a lot of paperwork can get you money for a new roof, remodel a kitchen or bath, replace windows or even buy appliances! There are two kinds of this type loan. One is called Streamline. This is the easier of the two. A buyer can get up to $35,000 for repairs above the cost of the purchase price. There are all sorts of rules about what can be done and what can't. This type of loan can not do structural repairs. If structural work is needed the buyer has to do the Standard 203k loan. There are only a few lenders who do these. It is important to use a lender that is good at this or it can take months! I have partnered with Lowes home improvement store to help people make this an easier transaction. In turn working with this program we can get some of this housing stock sold, put people to work and repair some of the blight in our neighborhoods. So if you are afraid to buy a house because of the possible repair bill give me a call and I'll put my 25 years of experience to work for you. I am also working to get my Certification in Real Estate Construction so that I can be more helpful in this process. After over 3000 house inspections I'm pretty good at this already. Just don't ask me to run a chain saw!