FHA loans are a popular loan to go with because of the low down payment (3.5%)With all the foreclosures on the market here in Kansas City, there are a lot of houses on the market that do not meet FHA requirements(FHA requires the home be in move in condition, etc.). I recently ran into such a house when representing a friend purchasing a home. The house had mold and water damage in the basement and a roof that needs to be replaced. We were able to clean all the water and mold out of the basement, so the only thing preventing it from going FHA was the roof. Major road block or so we thought. With the FHA 203K program, my friend is able to get a construction loan to fix the roof and he will get a fantastic house for a fantastic price. The FHA loans add significant extra costs to the price of your loan, so it may only be worth it if the house is priced low enough and you are confident there are no other major problems. I would recommend these loans to folks in a similar situation.
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Daniel Bennison, Laura Byram
Bennison Byram Team Realtors
Neighborhood Experts in Prairie Village and Overland Park
http://www.db.reeceandnichols.com
http://www.lifeinoverlandpark.com
That's awesome Daniel! In my market I deal with mostly cash/conventional deals but it's good to know there are these programs out there to help buyers like your friend.