This is a story that plays out to often in a home inspection. The buyer pays a home inspector to look at a home they have put in a offer. Then the home inspector finds something like floor joists are rotting. The buyer gets a contractor to give an estimate and it is $6,000.00 to fix. The seller says I will just lower the price of the home the amount to fix the floor joists. But then the buyer finds out the bank only loans the money for the purchase price of the home. Now he still does not have the $6,000.00 to fix the home. The deal falls through and no one gets the home. This does not have to happen. The buyer could get a 203K loan which will loan money for the home and repairs. Now the home deal can still happen. So many realtors and bankers just say, "we do not do 203K loans". I say why not? You could save so many more deals and secure more home sales. I have done some informal talks with bankers and realtors in some areas of Northwest Ohio and this program has grown and has helped many people achieve getting their dream home. The realtors are happier because instead of a lost deal now they have a deal and a sale. Ask if your realtor will help with a 203K loan if needed to buy your dream home.
Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long term, fixed or adjustable rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.Type your paragraph here.
Hermiller Home Inspections