Homes come in all shapes and sizes. They come in all types of designs and floor plans. They also come in all sorts of condition. Some are like magazine covers and some are more like a bad dream after a hurricane. Most are somewhere in the middle and we would like to buy them but they need our own special touch to make them our own. This is where with a little creativity we can use FHA insured mortgages to our benefit. By knowing our options we are able to see a home that needs some updating or repairs and not discount it but instead see in it the opportunity that it offers.
USHUD tries to communicate that a home that needs repairs under $5000 can be financed through the FHA but so few people do the research that our advice falls on deaf ears. Since you are reading this you are going to be one thousand steps ahead of any other home buyer. And the home doesn’t have to be a foreclosure. For that matter the home doesn’t have to be a new purchase as we can refinance our current home using a FHA insured loan and have enough funds to do the repairs that we would like to do and perhaps save money at the same time.
The different types of mortgage loans available are still more than most people understand or loan officers even think of. If the home needs some updating or repairs and we don’t look into securing the purchase with a repair escrow mortgage we are limiting ourselves. This type of mortgage is referred to as a FHA 203b loan and it can work wonders especially since so few people know about this type of mortgage and how easy they are. We can have their lack of knowledge become our good fortune by seeing what the house can be instead of what the house is. As others are looking for the perfect house we are able to see the diamond in the rough and take advantage of the opportunity that we are being presented with.
Ask your loan officer about a 203b mortgage before looking at homes and see homes in less than magazine cover condition in a completely new way.