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Jenny, Home Buyer in 95609

I am interested in purchasing a home, what would be the best financing type if the home is a bank owned property and requires repairs? I can qualify

Asked by Jenny, 95609 Fri Mar 23, 2012

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To put it very simply Jenny,
FHA loans, which are government backed loans are perfect for rolling in the repairs
required for whichever property you are looking for, given that you meet their guidelines.
0 votes Thank Flag Link Sat Oct 19, 2013
Ask your lender about an FHA 203K loan in which the cost to do some repairs, etc. will be factored into the loan you can get.

Do note, however, that some bank-owned properties listed for sale may require preapproval by the preferred bank (although you are not required to use that bank).

Ask a realtor for referrals for good reliable, resourceful and responsive lenders to help guide you.

Good luck!
0 votes Thank Flag Link Fri Mar 23, 2012

Depend on the repairs.
FHA has a rehab loan.... it is called a '203K loan'.... it is a more expensive loan than a regular '203b' FHA purchase loan. Fees & Rate is higher.

But.... if the type of repairs are allowed to be escrowed.... there is a better option. Not all lenders offer this option.
Basically... it is allowable for some repairs to be escrowed into the loan. So the repair amount is added to the loan and that money is held at the title company after closing.... to be dispersed to a contractor on the completion of the work.

These are done on a case by case basis.
Let me know if you would like to work thru a scenario.... I have done these.... Pretty straight forward deal.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
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0 votes Thank Flag Link Fri Mar 23, 2012
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