When searching to purchase your home as well as searching for a mortgage loan you should keep your ALL your options on the table. Allow me to relate:
First lets talk about financing. Don't just limit yourself to FHA 203K. There are other loan programs that you may qualify for; for example the much more popular FHA 203b, or conventional, or Home Path loan programs, just to name a few.
HomePath Mortgage allows a buyer to purchase a Fannie Mae-owned property with a low down payment (minimum3% down), no lender-requested appraisal, and no mortgage insurance. It should be noted that Bank of America does not offer the Home Path loan program. Another added benefit is that Fannie Mae participates in the National Stabilization Program First Look Initiate whereby during the first 15 days the eligible buyers are owner occupants, public entities and their partners, and some non profits (not investors). More information is available at http://www.HomePath.com
Second lets talk about real estate. Once you know ALL the loan programs you qualify for, know your limitations, and know the the criteria of the home you want...THEN your Realtor can send you a list of EVERYTHING available within that criteria leaving absolutely no stone unturned. And when you see a property you like...GO FOR IT...and put your best foot forward when making your offer. Don't be discouraged if some offers don't get accepted. I have seen some customers disappointed when certain offers were not accepted... only to be much, much happier later when an even better home came around and they finally got the offer accepted on that property.
Be Patient. Stay Positive. And Keep All Options on the Table.
Lic. Real Estate Broker | REALTOR
Lic. Loan Originator | NMLS 291097
4000 Ponce De Leon # 470
Coral Gables, FL 33146
However, 203K are complex and are not popular with the asset managers at all - because they
rarely come true.
They'd rather have a firm cash offer than a complex, highly unlikely to close at all or timely, 203K.
Since we don't know your overall financial picture, it is hard to advise specifically, but a game
changer might be a tall order.
Hope this helps,
Beachfront Realty, Inc.
I am afraid you are in a jam. Your market experience is more common than anyone thinks. I have been working with an FHA approved Buyer for about six month and we have experienced the same; offer after offer and someone else has always beat them to it. Having had experience in the distressed sale market, for several years now, I have to say it is getting harder for conventional Buyers to beat the individual who is buying cash even when their offer is above the asking price. Anyone who tells you otherwise is yanking your chain. Cash is (almost) always king!
Most Buyers waited too long to get off the fence and now they are competing with each other for the same property. To make matters worse, the investors and speculators are in the mix as well. They know the market has turned and that it is only a matter of time before they can turn their purchase and make a profit.
For those of you who waited this long, I have some advice; GO FOR THE UGLY HOUSE!!!!! There will be less interest for these homes. Yes, you will have to work hard, but this may be your only opportunity to buy in this market. Pick a home priced below what you are pre-qualified for and make your highest and best offer - may have to be for more than the asking price.
In this case the 203K will come in handy - you will be surprised what a coat paint, landscape, new bath and kitchen will do to an ugly house.
One other thing. What I am about to suggest may have some risks associated with it and I strongly advice you to ask your attorney to thoroughly explain the consequences of making this kind of offer.
What I suggest to my Buyers do (in Florida) is to make the best and highest offer along with a conditional commitment letter. What this means is that you, the Buyer has waived the finance contingency and instead of waiting out the full default commitment period as stated in the FL contract, you are fully commited to buy the property (in essence this would almost be a cash offer) coming in. Once the offer is accepted, the Buyer is fully committed (from day 1) to buy the property and the Buyer's deposit will be in jeopardy unless the property doesn't appraise or there are issues (as per your contract) with the inspections.
Important Note: Every case is unique and you must consult with you RE agent and an attorney who can thoroughly explain the consequences of waiving the Finance Contingency before you present an offer.
For more information, you can contact me at 786.302.0351 or email me at juan@insideMIAMIrealestate.com. You can also visit me at http://www.insideMIAMIrealestate.com
Juan Sanchez Broker Associate Real Living FSR Coral Gables
Fannie Mae bank owned properties are open to owner occupant offers for the first 15 days but even after the 15th day they will take an owner occupant offer over an investor offer most of the time.
Best wishes on you potential home purchase!
South Florida Brokers
All good answers below. The best being that the bank knows that the property will probably not appraise if you offer too high.
My advice would be to look a regular sales rather than bank onwed properties. There are just as many deals, and are often in better condition.
Best of luck,
South Florida Brokers
Expect to pay "above" market value in this market.
Stop wasting your time chasing foreclosures. There are plenty of good deals to be found in the general marketplace.
As an investor broker for 10+ years, you need to learn and change from your experiences. if every deal is falling into the hands of a cash buyer, what makes you think the next deal will be different?
you need to re-focus on general market sales and find a good property that you can remodel to make your own.