As the first time home buyer and move up buyer credit gets closer to expiration it is quite apparent that there will be more activity of shoppers in a frenzy to make offers on the existing inventory. Another catalyst to create the “perfect storm” for some home buyers is the speculation that interest rates will be going higher when the fed exists the purchase of Mortgage Backed Securities.
With this in mind it is important that buyers consider all mortgage products. The loan that should gain tremendous traction is the FHA Rehab loan 203K. This loan comes in two flavors, the streamline and the non-streamline. The main difference between the two is that the streamline FHA 203K is one that has a maximum of $35,000 set aside in escrow for specific repairs. The non streamline FHA 203K is one that takes into account the appraised value of the home, not as it is now but, as it will be once the completed work is finished. The work can include, complete remodeling of bathrooms, room additions, in depth repairs, detached garage construction, etc.
If your desire to achieve the American dream feels like it is slipping away due to the fact that you have placed multiple offers, this is not the time to quit. Just think of how much more you know about your local market and when you go out shopping don’t get stuck not placing offers due to the property’s current condition or appearance but how it will look through your creative eye when it is completed.
