As we are all aware, there are plenty of foreclosures out there and more coming on the market. While each property has unique challenges and opportunities, it is not true that you need to pay all cash for one.
If the property in question is in need of substantial repair you can apply for a FHA 203(k) loan. Upon acceptance, qualified buyers can purchase the house as-is and finance the purchase, repairs, and improvements with a single mortgage loan. The loan amount is based on the value of the home after the construction is finished and the loan down payment is only 3.5%
Lenders, like Bank of America's Buy and Renovate home financing program, are even providing extra help by lining up contractors and project management services before the loan is entered into. The service provider, like Lowe's Home
Improvement, works with the customer and the lender through the entire repair process. If you have questions about a foreclosure you're interested in, give me a call- 912-352-1222.
Special thanks to Jim Ragan with Bank of America Home Loans for the 203(k) information. RealEstate Vol. 28, #12, 2010.
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