What If You Could Buy A Home 50K Under Market

With the unfortunate circumstances of foreclosures, home prices took a nosedive and left lenders with a huge inventory of homes. Some in pristine condition and many that became an eyesore, just waiting for anyone to take it off their hands. Those eyesores are available for sale at bottom dollar pricing.

You’re probably familiar with many of the acronyms including REO’s that banks are holding title to. These are homes that were foreclosed and were not sold at auction. These REOs are sitting there on the banks books waiting for the right owner at an unbelievable price.

Many of us have been looking at homes without real vision and seeing the potential the home may have. You can walk through a home where the appliances have been removed and copper pipes pulled out or perhaps even the walls have holes; but don’t turn and run just yet because a 203K Rehab loan could repair and upgrade all of that.

First of all, don’t let all the guidelines and paperwork scare you because there are some steps to take in order to secure a 203K Rehab loan; but they’re simple steps;

• Identify the property you’re interested in

• List specifically what must be done to the property and what you "want" to be done

• Give the items on your list an approximate estimate for the work to be done (get a contractor to provide some estimates and other general help)

• Submit the offer with your list

• After the offer is accepted contact a licensed contractor for an itemized estimate

• An FHA appraisal will be done and it will outline what absolutely must be done

• Revise and fine tune what will be done and we'll make a final FHA worksheet

• One closing and we are done!

The 203K Rehab loan is designed to allow homebuyers to purchase and rehab a home with a small down payment on a house and use their leverage to roll costs into the loan and still personalize with repairs and upgrades right from the start. It’s like starting off with a shell and customizing it. This rehab loan is definitely not for the homebuyer looking to move-in quickly, since any construction takes time to plan and complete. This is for the homebuyer that has a long-range plan.

Think of how much money is saved when you can get a deal on a home and then customize it to your liking.

And just because a home is labeled as a foreclosure doesn’t mean it’s gutted from the inside out. Many of these homes are in perfectly good shape with minor needs for repair. Here is a solution for finding your dream home and improving upon what you have.