Many times a buyer will find the perfect home and it just needs a some fixes – these home can be purchased with a 203k FHA loan. Although these loans can be tricky and the buyer, agent, lender and yes even the seller should be aware of the process they can be done.
Half the success of closing a loan and a purchase is making sure the people involved understand the process and what to expect. With a 203k loan your repairs can be financed int he transaction, however before your appraisal you will want to have a qualified contractor look at the home, and give you an accurate estimate of the repairs. The estimate needs to be very detailed this estimate is used as part of the appraisal. The appraiser will be given a copy of this estimate and consider what the value of your home would be after your repairs are complete.
In Central Oregon these loans are a little trickier than in your more populated areas, because the list of certified and qualified contractors, engineers and so on are limited.
Paul Welden says
There is now a national 203k contractor directory that actually educates contractors on the 203k loan program. The operators also run 50 state-specific 203k contractor directories such as http://203kContractorsOregon.com . Check it out.
Thesa Chambers, Broker, ABR says
thanks for the directory