Even the Playing Field With Investors to Buy Foreclosures

Ever heard of a 203K? Well it is the “IT” product for the next 5 years. It’s an FHA loan that allows you to not only refinance your existing home and get some necessary repairs or improvements done, but will also let you purchase a home and get the cost of the improvements all in one loan! And you can do virtually ANYTHING to the home accept put in a built in swimming pool in the backyard or a hot tub. You can even tear the home down to the foundation, build on it and start all over. And best of all with FHA 30 year fixed rates below 5.00% it is the only ASSUMABLE MORTGAGE PRODUCT IN THE INDUSTRY. Get a LOW interest rate loan and fix the property up – and sell it down the way – the buyer can assume the mortgage. Think about how marketable that will be as the rates start climbing again when you are selling a below 5.00% property!

Let’s say you want to buy a home at these ridiculously low prices. If you are purchasing a home that needs major or minor repairs, it can be a difficult proposition because most banks won't lend the buyer the money to purchase the home until all the repairs have been completed. Also, you can't repair a home that you don't own. Thus, FHA created the 203K loan program to alleviate these problems by facilitating the lending of the funds needed to buy the home before it is repaired. You actually close on the home and over the course of up to 6 months you can draw repair money from the loan to have the necessary work done.

What can program mean to you?

• More money to work with. The amount you can borrow is based on the expected increased value of your home, after improvements are made.
• Less Strain on Your Budget. You can pay for your renovation gradually and affordably, over the loan term of your mortgage and if you are buying you only put 3.5% down.
• Less to Pay at Tax Time. Unlike other credit options, the interest you pay on funds used for a renovation is tax deductible since it is mortgage interest.
• Less Hassle. You'll have one loan to apply for, one set of fees, one closing to attend, and one monthly payment to make.
• Lower Payment. If you own a home you can use the 203K on your existing home. In many cases if you are refinancing with today’s lower interest rate, with your improvements your payment might actually go down or stay the same even with borrowing more money.

Want to hear more? Smart Property is partnered up with a lender that wrote the State of Illinois course for 203K and covers 7 states! Call Sohail Salahuddin at 312-437-7799 or send your email questions to Sohail@smartpropertyusa.com. Sohail and his lender are experts in 203K and want to help you take advantage of this unprecdented time in history to buy.