Business & Tech
This Mortgage Program Could Help with Fixer-Uppers
Some of the best bargains in Real Estate involve motivated property sellers with homes that need sprucing up.
The current housing market is providing golden opportunities to potential home buyers. Reduced home prices and historically low interest rates make this a very advantageous time for anyone considering the purchase of a home.
Some of the best bargains in Real Estate involve motivated property sellers with homes that need sprucing up, a little elbow grease or updating and modernization. Many prospective buyers don’t have the extra funds needed to make these improvements, especially in today’s economy.
Fortunately there are mortgage programs that are designed specifically to address properties in need of cosmetic repairs, upgrades, plumbing, heating, roofing issues etc.
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FHA’s 203(k) Streamline mortgage allows the borrower to replace a kitchen or bath, replace appliances or install new carpets. You could waterproof a basement, install a new roof or just make minor cosmetic enhancements such as paint and trim. There is no minimum amount work that can be financed. The maximum is $35,000 (including contingency reserve, inspection fees etc.).
Many people use the 203(k) Streamline program to replace outdated mechanical systems with new energy efficient systems or to replace old windows and storm doors with energy saving materials made from recycled materials.
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Another advantage to the 203(k) Streamline program is that the costs of the work/repairs are included in the loan amount and there is no secondary financing and no multiple closings to attend. The work can be completed after the loan closing and the borrower can oversee the project and choose the contractors themselves. Best of all the work can be completed after they move in to the property.
Understanding this great program and its advantages is the key to a successful transaction. There may be no better time to utilize this program. Foreclosures, short sales and other attractively priced properties might need a little TLC, but, may also be the perfect housing solution. With the ability to apply the necessary funds and today’s desirable rates, the 203(k) Streamline might be the program for you!.
Dominic Chilberti is a branch manager for located on Byberry Road. For more information, call (215) 639-5952 or visit www.superior818.com
