How To Buy a Bank Owned Property When It Needs Repairs

So you want to take advantage of all the really great prices on bank owned properties but as you look at them so many of them need work. More work then you think you can do on your own. Once you buy the property you won't have the money left over for repairs and even if you wanted to buy the property would the bank actually give you the money? The answer is...YES! There is a loan product available called the Streamlined 203k. It is an FHA loan that requires 3.5% down but allows you to borrow 10% over and above the purchase price. So lets say that you want to buy a $150,000 house. With a Streamlined 203k loan you can actually borrow up to $165,000. With the money you can paint, put in new appliances, finish the basement, put in new flooring etc. The way it works (at a high level) is that you need to get 3 quotes for each of the things you want done and you have 45 days to get the work done once you have closed. The bank will pay the bills for the repairs/upgrades and any money not used will go towards reducing your loan amount. No, you can't keep the extra money and take that trip to Hawaii you've always wanted. But this is a terrific way to get into an affordable home. For more information call me at 719-330-8531 or email me at mailto:donna@yourhomeinthesprings.com