The Peters Team out of the Keller Williams office in North Buckhead / Brookhaven are top notch. They know their stuff and if you are buying in that area you’d be well served giving them a call. Here is a recent post of theirs about their last 203K transaction.

http://lesleypeters.com/2010/05/

Just blogged on our new first-time home buyers, Jason and Brooke, who took advantage of this Atlanta real estate market and purchased a home that needed renovation.  Check out the blog by clicking here.  Got my mind to thinking…  We haven’t written a new Atlanta 203k blog post in quite some time.  Here’s the old one:  click here.

So, let’s take a new look at 203k (not much has changed):

Many buyers want a good investment opportunity in this down market and hope to buy a distressed property (foreclosure, short sale, or even an estate owned home) that needs TLC.  Problem is, if a home is in need of a lot of repairs, the bank won’t loan the money unless the home is repaired.  We run into this often.  A home has no appliances or the roof has a major leak…  the buyer can’t get a loan until they spend the money to make the repairs.  And, who in their right mind wants to spend money on a home that they have yet to purchase?  You see the issue!

Now, 203k can come to the rescue!  A 203k loan enables you to purchase a property and include in the home’s loan the cost of renovating, repairing, or improving the property.  The loan is an FHA product and requires approximately 3.5% down on the home + repairs/improvements.

Many people ask us if this is an investor loan.  No, this is not an investor loan.  This FHA 203k product is for hombuyers that are going to occupy the home.

Here’s the process:

1.  Call us and let us help you find a home that would be a good candidate for a 203k loan!  The Peters Company at Keller Williams Realty Peachtree Road 404-419-3619

2.  Find a 203k loan officer – we can help you with this as we’ve had lots of experience.

3.  We’ll then write an offer to purchase the property you’ve found inlcuding verbiage that the financing is FHA 203k and contingent upon financing and repairs required by FHA.

4.  Choose a vendor/contractor that can draw up a proposal of the work done and give an estimate on the project (individualized and in it’s entirety).  Haven REI is an approved FHA 203k vendor and very familiar with the process.

5.  An appraisal is ordered to determine the home’s value post-renovation.

6.  The loan closes to cover the purchase of the home as well as the repair/renovation costs.  The seller receives the payoff for the property and the funds to renovate/repair are placed into an escrow account to pay for repairs/renovations during the rehab process.

7.  The rehab project begins and the contractor/vendor is paid through draws as work is completed.

8.  You own a home that is repaired and renovated to your own desires!  And, most likely, have made an excellent investment decision!

If you’d like to learn more about the Atlanta FHA 203k process and loan, give us a call.  We can help you get started and put you in touch with an FHA 203k loan officer specialist who can answer all of your questions!