Another challenge with the existing home inventory on the market is the condition of the property.  Whether it is REOs, foreclosures, short sales, or not, less people are presenting homes for sale in pristine condition.

The FHA 203k loan can help. The 203k can give the buyer the ability to have one loan to purchase and renovate their home at the same time.

Similar to a traditional mortgage with a construction loan added on top, the 203k can be used for the following:

Remodeling bathrooms and kitchens (even built-in appliances)  Replacing a roof, gutters and downspouts Adding a second story, afamily room,another bath, etc. Completing a basement or attic Upgrading plumbing, heating, air conditioning or electrical service Installing new siding, energy efficient windows and doors AND MUCH MORE!

It is important to hire a general contractor that is familiar with the 203k process and requirements.  Advanced Restoration Corporation, a 203k contractor, was recently featured on NBC News4 New York regarding 203k loans, along with Continental Home Loans.

Streamlined 203k Loans
You are purchasing a home that needs minor repairs (repairs under $35,000 qualify for a streamlined loan).  Incorporating the rehab into your mortgage payment allows you to have just one payment. Some highlights include:

No work write-up, no inspection required if repairs are less than $15,000 and no HUD consultant required. Loan amounts up to 110% of the home’s appraised value; renovation amounts up to $35,000.  There is no longer a minimum of $5,000 in repairs for a 203K Streamline. On a 203K Streamline, up to 50% of the rehab amount can be requested immediately following the closing. After closing the work can start. For a 203K Streamline, there is a maximum of 2 draws per contractor. Loan can be used for many improvements, including repair/replacement of:  roofs, plumbing, electrical, flooring, minor remodeling, windows, doors, etc. Available for mortgage refinance transactions including those where the property is owned free and clear.