My closing this coming week on an FHA 203(k) loan gave me pause to post this blog so others can learn about this fantastic option.  This loan type opens a tremendous number of doors given the number of bank-owned properties that are for sale.

In short, the FHA 203(k) loan allows for renovation, updating, improvements, and rehab as long as you are purchasing the property as your primary residence.  The underwriting guidelines still do allow for up to 6% in Seller concessions, and in-short the expenses involved in improving the property are financed and amortized over the life of the loan.  This all on-top of the up to $8,000 Tax Credit if you qualify.

The clients I represent in the closing this week are purchasing a bank-owned home and their rehab includes:  brand new kitchen, baths, siding, flooring, redesign of the great room, and so much more.  What a fantastic and fun option to get a property at bargain basement pricing, fund all of your favorite updates and improvements, and finance it all for the privilege!

SO, if you are thinking of purchasing a home and considering a bank-owned or a fixer-upper, but do not want to empty your savings to get the updates and renovations you dream of, then there may be a perfect solution for you.  Contact me today to learn more.

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Derek Bauer is an Associate Broker and Realtor® with Real Estate One, Michigan's Largest Real Estate company.  Derek is also the lead of the Derek Bauer's, "Door to Dreams Team."  As a Certified Distressed Property Expert, Derek is helping homeowners avoid, and even reverse, foreclosure.  Learn more at http://DoorToDreams.com.  Derek Bauer is licensed in Real Estate in the State of Michigan, is not an attorney, and can not and does not provide legal advice and/or counsel.