Notes from Charlotte County, Florida

We have all heard the stories of foreclosures or short sales where the home is missing appliances, plumbing, countertops, cabinets, or have been vandalized, sometimes by the owner, out of anger over the loss of their home.  A new FHA program can be a real help to buyers of those properties.  FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements. 

It will help sell some of the foreclosed and short sale properties.  Often the buyers don’t have the money to pay for the repairs.  But more importantly, that could lead to a real boom in jobs for workers doing those repairs, stores selling those appliances, etc.  Think about the contractor, electrician, plumber, etc. who would benefit from these sales (homeowners can’t do the repairs themselves, they have to use an approved contractor, and the money is escrowed by the lender and paid to the contractor).

LINK: Streamlined FHA 203(k) Limited Repair Program