Using the FHA 203K Streamline Loan in this market
The FHA 203K Streamline loan is a great option for many buyers but this type of loan seems to be underused in today's market. In this market, there are a lot of listings that would be perfect for many buyers if only the kitchen was updated, or if the bathrooms and floors were replaced. Many houses in this market need a basic rehab and this mortgage option allows buyers to consider these properties when searching for their new home. When purchasing a house that needs a nonstructural rehab/upgrade work, the FHA 203K Streamline loan may be your best financing option.
The FHA 203K Streamline loan allows money for the purchase price, plus up to $35,000 in upgrades/repairs as long as they are nonstructural. The normal FHA requirements are in place when obtaining this loan. In Mecklenburg County NC, the maximum loan amount is $303,750.
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The buyer must obtain his/her own estimates from area contractors prior to obtaining the loan.
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The work must begin within 30 days of the closing and must be finished within 6 months.
This option does require that the buyer and buyer's agent do a little more leg work upfront, but in a market filled with short sales and foreclosures, this may be the buyers best option.
