Atlanta, GA. -- Foreclosure’s are on the rise and there are huge opportunities for home buyers who are interested in buying real estate at bargain prices. Opportunities yes, but they come with their own set of problems and risks.
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The Problem:XXXXX
Most foreclosed properties are not in the best of shape
Most foreclosed properties require extensive repairs and renovation
Most buyers today do not have the cash available to renovate
Most lenders will not lend on properties that require extensive repairs until the work is complete.
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What is a buyer going to do?
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To the Rescue…The Department of Housing and Urban Development offers a home loan through the Federal Housing Administration Called the 203-K loan. The “K Loan” allows a buyer to purchase a home, allows them to roll the cost of renovation into the loan and if the renovations require that the owner vacate the home, the borrower may finance up to 6 months of payments.
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The final base loan amount must remains under the FHA loan limit for the county in which it is located. In the Atlanta MSA (Metropolitan Statistical Area) has a loan limit of $252,890 for a single family home, $284,834 for a two-family home, $346,060 for a three-family home or $399,300 for a four-family home. If you are not sure of your counties loan limit, go to the FHA Loan Limits web site, choose your state and review the list for your loan limit.
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The property does not have to be a foreclosed property; in fact, it could be a home that the borrower would like to update the kitchen or bathrooms, maybe some paint, new appliances or new carpet. You could use this loan program to add a room or a 2nd floor to the home. The borrower can use this loan program as a refinance and fund home improvements. The “K Loan” is a great loan for renovations, so if you are thinking about a renovation or know of someone who might need a loan product like this, just call or e-mail Jim Hogan, the LoanSource.
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Jim Hogan is with Opteum Mortgage and is an FHA 203-K Renovation loan expert. You can contact him at jhogan@opteum.com or 404-240-2348.
