More homes than not that are currently on the market need some work. From simple cosmetics to major reconstruction to simply adding solar panels. As a buyer your options are pretty limited. Hence the values of those homes are lower than those that are perfect.
Contrary to many in the Real Estate Community the appraisal process for a conventional loan is the same basic appraisal for an FHA loan. Glaring repair issues will prohibit you from getting financing in an already difficult arena.
Consider the FHA 203K loan. The qualifications are the same as a standard FHA loan. That’s right the dreaded 203K loan that every Realtor I talk to says they hate. I too have heard the horror stories of 6 to 9 months to close a loan. That simply is not the case if you follow some very simple rules. You need to hire a Consultant and Contractor that work well together and you need to know upfront all the work you want to complete. Adding as you go simply slows down the process. The Contractor and the Consultant are key to a smooth transaction.
More and more homes entering the market are foreclosures that are of less than average condition. Many of the investors holding these properties are countering offers with a 203K loan.
There are simple solutions on how to close the FHA 203K loan within 6 weeks. Tune in to listen on WBCB 1490 am Friday morning 9:00am.