So you want a deal on a Fixer…and you’re willing to do some work?

During the last market “crash” in the 1990’s I bought and fixed homes…it was the greatest experience…and VERY profitable.

Unfortunately, one important thing has changed in the market today…right now lenders don’t want to make loans on homes that aren’t in good condition.  This leaves a lot of homes out there that most folks think can only be bought with cash…but there is one alternative that can be used by almost every buyer….the FHA 203K program.

This is really two programs in one…the standard 203K rehabilitation loan program…and the 203k Streamline program.

Here is a quick overview of way these programs work:

• Buyers can purchase distressed properties that don’t qualify for other types of financing
• Licensed contractors evaluate the repairs needed before the home is purchased…and provide a comprehensive bid for the repairs
• Buyers, lenders, and contractors all work together to structure the loan which allows the repairs to be completed after escrow closes
• Repairs can be major, or minor…depending on the program
• Buyers can even include money in the loan to make payments while the repairs are completed

The glut of foreclosed homes in San Diego means there is a good supply of homes that need this type of help. 

This is an excellent program…but it costs a little more than conventional loan programs…but these costs can be built into the offering price…and this program gives buyers something they can’t get anywhere else…a home at a good price with new features…that is a Win-Win situation!