Home     |     Contact us     |     Partner with Us

      

Home Improvements Turn Average Homes
into Dreams Come True

By Mario Blautzik, Senior Loan Officer Mason Dixon Funding, Inc.

Home buyers, you may want to consider an “old” type of financing that is seeing a revival in this market. The current market is witnessing an increasing inventory of homes that need repairs or updates. These homes are being overlooked by buyers while the inventory of homes priced to sell and in good shape are receiving multiple contracts.

Some homes may fail to meet minimum property conditions required by lending guidelines. This financing gives home buyers the opportunity to tap into the large inventory and expand the choices available to them.

I am referring to FHA 203K Streamline loan program. It allows for both the purchase and the repair or updates to be rolled into one loan. The appraiser takes into account the current condition of the home known as “As-Is” value and the required improvements “As-Improved” value. Below are some of the criteria:

• 3.5% Down Payment
• Up to 6% seller contributions towards buyers closing costs allowed
• Flexible credit qualifying
• Loan Limits up to $625,500 (in Montgomery County, Maryland)
• Repairs up to $35,000
• No Income Limits
• No Reserves Limits
• Do not have to be a First Time Home-Buyer (however, No Investors)

This type of financing is a niche program. Consult your 203k loan officer for more information regarding types of repairs and updates allowed. He or she can walk you through the various options and the flow of the loan program and lead you on your way to new opportunities in this market.

Mario Blautzik is affiliated with Mason Dixon, a licensed Maryland lender. For free consultation and more information about mortgage loan programs, call Mr. Blautzik at 240-353-5102 or send an email to MBlautzik@masondixon.com.