I am a 203K Rehab Specialist located here in Florida. I do loans all over Florida and used to live in South Florida and work in Bay Harbor Islands many moons ago and still visit as much as I can.
As the previous writer mentioned, a 203k loan can help you overcome the obstacles you are facing in this competitive homebuying market. It is my opinion that too many realtors, and investors alike, immediately dismiss offers from buyers who elect to use FHA financing because they think the property will not qualify for an FHA loan.
The 203k Rehab loan was specifically created for buyers that want to purchase fixer uppers but may not have the cash on hand to do the repairs. This loan offers buyers the best of both worlds - low down payment, great rates and since the cost of the repairs and purchase price are combined into one loan , you only have one monthly payment.
There are two versions of the 203K - Streamline which is used for less extensive repairs up to $35,000 and the Standard - which can cover additions and major renovations over $5000. The max limit is determined by the estimated future value of the property once the repairs are done. You can use the 203k to do as little as purchase appliances to replace a roof, AC and even fix an existing pool.
My company also offers the following 203k refinance option. If you purchase the property for cash, you may be able to refinance the property within 6 months of purchase to cover the repairs and possible recoup some of your acquisition costs.
Since the 203K product is not well known, I encourage my buyers and their realtors to contact "cash only" lisitings and talk to the Agent/Rep. Sometimes, they're receptive - at that time, I'll give them a call to educate them about the product and usually they'll consider the buyer's offer.
We are one of the largest 203K servicers in the country and largest in Florida. I've closed countless 203K's and would appreciate the opportunity to help you purchase your next home.
Please feel free to contact me and review some of blogs and other responses re the FHA 203k loan.
Hope this helped.
FHA 203K Specialist
1600 East Robinson Street