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Buy a Fixer Orange County Home with FHA Financing

Posted by Leslie Eskildsen on Thursday, January 7th, 2010 at 12:49pm.

Buyers who find the perfect Orange County home for sale, but are using FHA financing are sometimes at a disadvantage to other buyers because FHA has certain requirements about the "livability" of the home.  The FHA 203k Rehab Loan program is designed to help people buy a home that needs some work.

FHA 203k Program

 

 

 

Basics of the Program

Essentially, this program allows you to buy a home that is listed for sale below the market price because it needs repairs, and build the cost of those repairs into your financing.

There are obviously a few requirements to qualify for the program.  Here's a quick rundown:

  • The program is for "owner occupied" purchases only - no investors/income properties
  • Single Family homes, Condos (with some restrictions) and residential properties with up to 4 units
  • Repairs must meet certain guidelines - no "luxury" improvements are qualified
  • The expected value of the home after repairs must be confirmed by an FHA Appraiser

Great Opportunity for Buyers

This is a great program for FHA buyers because it opens up a whole new pool of homes for sale in Orange County that they can consider in their search.  Normally FHA buyers have to exclude almost any home that need extensive repairs, even if it's that diamond in the rough that could become their dream home with a little work!

 

 

 

1 Response to "Buy a Fixer Orange County Home with FHA Financing"

Buying a Fixer Home for Sale in Mission Viejo — Orange County Real Estate wrote:
[...]issues, or required repairs that the lender may not allow the buyer to pay for.  With FHA, a 203k Rehab Loan is a possibility.  With a VA loan, it’s important that the buyer be very clear about the[...]

Posted on Friday, January 15th, 2010 at 1:14 PM.


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