Use FHA 203k Financing to Make that Ugly Distressed Property Your Charlotte Dream Home
Use FHA 203k Financing to Make that Ugly Distressed Property Your Charlotte Dream Home
Interest rates at historic lows. Lots of homes at discounted prices. Foreclosures, short sales, distressed properties. There’s never been a better opportunity for a Charlotte NC home buyer to get a great deal on a home with an affordable payment.
You agree. You should take advantage of the opportunities in this real estate market.
What holds you back is the condition of all those distressed properties. Ugly outdated kitchens. Missing appliances and light fixtures. Walls with holes. Stained worn carpet. Furnaces and air conditioners that don’t work. You can’t see these ugly houses as your home and after making a down payment and paying closing costs, you can’t afford to fix them up.
Don’t let condition and repairs keep you from being a Charlotte NC home buyer. There is a solution. Consider an FHA 203k loan to finance both the purchase and the renovation of that fixer-upper.
The FHA 203k loan program has two types of loans that can be used for renovations. The Standard 203k will cover structural repairs and landscaping and site work. The Streamline 203k covers repairs and renovation up to $35,000. Structural work and landscaping are not covered under the Streamline program.
How does the FHA 203k program work? A scope of work for the repairs is identified and cost estimates are developed by a contractor or contractors. The participating lender orders an appraisal, approves the buyer’s qualifications for the loan including the budget and cost of repairs. Once the loan is approved, closing of the property occurs with funds for renovations set up in an escrow account. The renovation must be completed within six months of closing for the streamline program.
What repairs are eligible under the FHA 203K program?
Streamline 203k repairs include roofing, gutters and downspouts, heating and cooling systems, plumbing and electrical, flooring, kitchen remodeling, interior and exterior painting, appliances, decks, porches and patios, window and door replacement, and wells and septic systems. No structural work is allowed under the streamline program.
The Standard 203k program includes everything allowed under the Streamline program as well as structural renovations. Under the Standard program, you can move load-bearing walls, repair structural damage, add rooms, improve landscaping or finance renovations that will take longer than six months to complete.
Want to know more?
Contact Carol Fox of Allen Tate Realtors at 704-905-3935. Carol recently completed training to become a Certified 203k Specialist and can provide you with more details about the program.
Copyright 2010. Carol Fox. Allen Tate Realtors. *Use FHA 203k Financing to Make That Ugly Distressed Property Your Charlotte Dream Home*