With foreclosures and short sales dominating the market place right now- more and more offers that customers are submitting to banks are coming back with two options.   The banks are saying you need to go conventional (As-Is) or FHA 203K rehab.   

The FHA 203K Rehab loan is usually the only option for first time home buyerssimply because the FHA 203K loan is the only one that offers the low down payment option.  All FHA loans regardless of type have a minimum down payment of 3.5%.  The question is- “Is the 203K Fixer Upper loan right for me?”.  The answer to that comes down to if you have the time and the desire to deal with a property that is going to require repairs.  When considering purchasing a property with a 203K loan remember that you are typically going o be getting a property at a discount because you will have to get the work done yourself. 

Finding a good lender who knows the FHA 203K Rehab loan is very important- make sure to find a FHA 203K lender and not a broker on these loans.  You want to make sure that the lender you select has the ability to underwrite these loans in house because brokering these loans takes the control away.  Please contact me and I will be happy to walk you through the process and help you decide if the FHA 203K is right for you. 

Jeff Onofrio- Village Home Mortgage- jonofrio@village-capital.com          Mobile- 609-217-9409