In today's Real Estate Market, Tampa Real Estate Agents show many short sales and foreclosures that require some TLC. Many buyers pass up these homes automatically, afraid they cannot afford to make the improvements necessary.
Buyers, and even many Tampa Realtors are unaware of the FHA 203K Home Improvement loans or at least not sure how they work. These loans however can go a long way to getting many of these homes sold, fixed up, often replacing an eyesore with a well taken care of home, a welcome addition to any neighborhood.
There are two types of FHA 203K loans, Streamline and Full.
The Streamline FHA 203K loan allows for up to $35,000 in improvements.
The Full FHA 203K loan is a bit more involved, requiring an FHA Consultant to be involved in this loan, and the amount for improvements is the difference between the loan amount and the appraised value upon completion of the work.
There is no limit to how much you can take out, as long as the total loan does not exceed the local FHA loan limits. You can even build in six months of payments so you can live elsewhere until the work is done.
The Full FHA 203K loan does cost more, but unbeleivably does allow a loan to value ratio of 110%. And we thought these types of loans were dead, though it is important to really consider whether you want to get a loan for 10% more than the home is worth, since that is one of the reasons how we got into the foreclosure mess we are facing now.
The video by the guys at Think Big Work Small explains the FHA 203K Home Improvment Loans extremely well.
When you are ready to look for homes we have a FREE advanced listings search, which allows you to choose all your search criteria including whether you want to look at lists of just short sales, foreclosures, regular sales, or all combined in one list.
Jeff Launiere of Charles Rutenberg Realty can assist you in finding the best properties, negotiate the best deal and help you locate the best financing. Just give us a call at 813-388-9253 or email us at Jeff@TampaHomeSpecialist.com
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