Buying bank owned properties is not just for cash buyers.
Categories: Buying Real Estate, Mortgage News, Real Estate News
hiThere is a long list of bank owned (REO) properties on the MLS, however, many of them need repairs. This sometimes becomes a problem finding buyers. Many require cash only buyers. Why? Because when a buyer is financing the purchase, properties won’t appraise if repairs aren’t made prior to closing. In the end the deal falls through if owner of record/bank does not repair the property. So what can we do for those buyers who are looking to buy a home that needs some TLC, and is selling AS/IS. You might want to have them look into FHA 203K, also known as the Rehabilitation Loan (Rehab Loan). This loan enables homebuyers to finance both the purchase of the house and the cost of its rehabilitation through a single mortgage. Repairs can be made after closing. For more information you can go to http://www.fhainfo.com/fha203k.htm
