Can't find that FHA Eligible Home You are Looking For? Try Looking in a Lower Price Range!
Yes, I said look in a lower price range! By looking in a lower price range you might find a home that fits your wants and needs but needs some work. FHA has a mortgage that allows you to buy the home have the work done all as part of the same mortgage. With a little vision you can have the house you really want, all fixed up and maybe some extra equity to boot. The FHA 203(k) Streamlined Mortgage allows a buyer to purchase a home and have up to $35,000 in work done to it. So if you have been looking at $150,000 homes look at homes that need work for $125,000. Maybe they need a new kitchen and a roof or maybe even new windows. If you can envision this home all fixed up with its new value, you may have found the home you are looking for. And because it is now fixed up it may be worth more than you paid for the home and the improvements. After all this is what investors with cash have been doing for years.
Caution, make sure you choose a mortgage officer experienced in working with the FHA 203(k) Streamlined Mortgage to avoid delays and frustrations. And before you make an offer make sure a reliable contractor lets you know how much the repairs will cost. Using a single contractor can make the process much smoother and keeps accountability in one place.