Found a home with "potential" but don't have cash...and your lender won't touch it because it needs a new roof?

There IS a solution for you...the FHA 203K Loan

This loan program allows you to INCLUDE the costs of renovation into your loan up front!  It's not a secret, it has been around for years, but people don't know about it.

Qualification:  FHA qualifications apply with regard to income limits and loan limits.

Down Payment:  Just like the tradional FHA loan - you'll need to be able to put 3.5% down

Loan Amount: The loan amount will be the purchase price PLUS the costs of renovations - and both you and the home DO have to qualify for the full loan amount

Appraisal: The appraiser is going to account for the plannned renovations and include those projections into the appraisal amount.  This is one real key to success with this loan program; you can buy that home with amazing potential and have almost INSTANT equity.

Here's an example:

Home on the market for $115,000
     (a) Needs a new roof
     (b) Bathrooms are outdated and have some plumbing problems
     (c) Kitchen is outdated and needs new appliances

At 1500 square feet, 3 bedrooms and 1 bathroom, the "market price" on this home if it was in top shape could be as much as $150,000.  *(Assumes that the market average for homes in this area are approximately $100 / square foot)

Cost of Repairs and Renovations (you need bids from a licensed general contractor - and a consultation with a certified FHA consultant inspector) - $25,000

FHA 203K allows you to borrow up to $150,000 (depending on your personal financial qualifications, this is the amount the HOUSE could qualify for).  With just $5250 down payment you complete the purchase at $115,000 and have $35,000 available for the renovations, which could EVEN include 2 or 3 months of ortgage payment to cover the fact that you can't live in the house while the renovations are under way!

For more information:

Listen to the 25 October, 2009 edition of Real Estate Talk at www.kgal.com/realestatetalk.asp/

Or contact Dave Kammerer at Summit Funding:  email dkammerer@summitfunding.net