We are not local in your area, however have done many 203k loans for our clients. The 203k is a very nice loan product for properties that need some fix up and/or may not qualify for other types of financing. As far as a pro/con approach - Some of the pro's would be that you get to fix up a property the way that you want to, with your contractor, and have the cost rolled into your loan. It is a great way to get into a home that you otherwise might not be able to.
As far as the 'cons' to the 203k (and many of these CAN be avoided if you choose the right lender and agent that knows what they are doing) - It can be a lengthy and frustrating process. Your contractors need to know how to submit quotes the right way, and you need to make sure you budget properly for any repairs that will be required by the FHA 203k consultant (who is basically a check and balance for the bank and makes sure required items get done). Good, open lines of communication need to be had by all parties' in the transaction. Some banks, who shall remain nameless, have a reputation of not being very helpful or diligent AFTER the loan closes if you have any problems... and also may give a hard time in paying your contractor. Be sure to investigate your 203k lender up front to get a better idea of what to expect once work actually begins.
Overall - we have a lot of success doing 203k's for our clients in our area due to the amount of foreclosures on the market that need significant repair. If done right, it can be a smooth process - it is very important though to work with competent contractors, lenders, and real estate agents who are in good communication with each other... otherwise it could be a bumpy ride.
I wish you the best of luck with the house and hope you find a good roof contractor!... more
AS IS just means you acknowledge you are buying the home AS IS and WHERE IS.
On your contract, you should see a paragraph that explains your "Inspection Period". During the inspection period you are able to get your inspections done and be happy with the results. If you wanted to renegotiate or withdraw, it would be during that inspection period.
If your agent seem confused, maybe hire an attorney to read over your contract and better explain it.
Good luck to you!!
Florida Future Realty, Inc.
â€œThe opinions expressed herein are those of the author and/or commenters and may or may not represent the views of Florida Future Realty, Inc."... more
I agree with all the previous answers. Sellers need to be informed on what their home is really worth. In today's world we really need to do our homework on CMA's. The bottom line is THE APPRAISAL, unless it a cash deal. You can take offers all day long but without it appraising for the purchase amount, you wont close without the buyer bringing more cash to the table. In Saint Louis we have an appraisal rider to attach to the contract which makes the offer contingent on financing and appraising not lower than the purchase price.... more