Many homes are in fine condition but could be improved to the buyers taste but what if the buyer only has the down payment and doesn’t have or want to use any additional funds in order to bring what could be a great home up to their particular standard?
USHUD believes that the answer is very likely a FHA 203b mortgage that allows for repairs under $5000 to be included in the loan. This option can be exercised either with a purchase or a refinance but we will cover purchases using the 203b for this post.
When we show a home buyer a home that is everything they want except it could use some paint and carpet or any repairs that which total less than $5000 and the seller is unwilling or unable to do the rehab a great option is the FHA 203b which can bring that the property condition and appearance up to what the buyer is looking for. The property does not need to be a foreclosure and USHUD realizes that there is not always going to be a foreclosure in every buyer’s future. Buyers are all different and some are more particular than others. The one thing that they all share is their desire to purchase more with less. For us it is always a matter of knowing the options that we have and providing those options as potential solutions. The more problems we solve the more money we make and the more happy clients we have.
Selling homes is always a series of problem solving and the more we know the better we are at solving problems that may have stumped less knowledgeable or less experienced professionals. Keeping ourselves flexible and remaining open to new ways of accomplishing the same goals is key. This is where 203b and even 203k mortgages can be a real benefit so long as we take the time to get comfortable with the different loan programs that are available today.