Help may be at hand, as there is an FHA program of which people are largely unaware that has been around for years. In fact, often lenders and Realtors are unaware of its existence. (Last year, it was only used by just over two hundred borrowers.) This program, the FHA 203k, lends funds that may help to make "As Is" not quite so forbidding.
Through the FHA 203k program essential repairs, upgrades, additions, and even new appliances may be included in the FHA loan amount borrowed to purchase the home rather than requiring the purchaser to obtain a second loan or pay cash for needed improvements. Any renovation work must be completed within 6 months of the close of escrow, and the borrower has the choice of placing up to 6 months of mortgage payments on the end of the loan, should they not wish to occupy the home while work is under way.
While this program can certainly aid buyers who wish to do repairs and/or upgrades, it may also be of help in allowing buyers to even the playing field somewhat when up against investors in the competitive bidding for foreclosures and short sales.
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