Improvement Tool
the Al & Dee Real Estate Group at RE/MAX by the Gulf 

    

The Federal Housing Administration's 203(k) program is a valuable, if little known, incentive for buyers to purchase distressed properties.

   Nearly 4 million foreclosures filings default notices, scheduled foreclosure auctions and bank reposessions were reported on 2.8 million U.S. properties in 2009, according to RealtyTrac. Most of these properties will end up on the market, often at substantial discounts that might attract buyers looking for a bargain.

   But a key government program, the 203(k) loan, has the potential to make foreclosed properties much more attractive to potential buyers.

   Created by the U.S. Department of  Housing and Urban Development (HUD) in 1978, the 203(k) is an FHA-guaranteed loan that provides funds to help buyers purchase and renovate a home. In this program a borrower can obtain just one mortgage loan, at a long term fixed to finance both the acquisition and the rehabilitation of the property.

203(k) Details
What: A 203(k) is a HUD/FHA-guaranteed loan that provides funds for the purchase and renovation of a home.

Requires: A 3.5 percent down payment and compliance with standard FHA guidelines and loan limits (ranging up to $729,750) for 15 or 30-year mortgage.

FHA loans: Are available to those with marginal credit; are easiest to qualify for; can be processed with a downpayment that is gifted; are assumable; and have no repayment penalties.

Find out more about 203(k) loans and to obtain a list of currently available properties in need of repairs that qualify for this incentive program. Call us at 228.374.0002 or at al@alndee.com

  

NEED A CMA? Or do you know of someone who may need to know their home's worth? Perhaps you would like to know what the home down the street sold for? Regardless, give us a call and we'll get right on it. Call us at 228.374.0880 or send us an email and we'll call you right away.

Contributed by Al & Dee Allegue
Contact Us | (228) 374-0002 | www.alndee.com
Complimentary Mississippi Gulf Coast Real Estate Search