Foundation Repair and the FHA 203k Rehab Loan
If you are shopping for a new home and feel that foundation issues could be a deal breaker it might be time to think again. Especially for those of us in Texas since foundation issues seem to be on everyone’s mind. Don’t let that perfect house slip away just because of a foundation issue – the FHA 203k loan DOES allow for foundation work. In fact, it’s a common misconception that foundation repair is not allowed. That’s simply not true!
If you happen to notice cracks on the interior walls, large trees planted close to the house, windows and/or doors not closing properly or cracks in the garage floor then the home may have foundation issues but not to worry because the FHA 203k rehab loan is here to help! All of these issues can be remedied with the use of this loan. Furthermore, if there are other areas of the home you wish to upgrade, customize, etc you can do that as well.
Often times you will notice that HUD may list the home as “uninsurable” as a result of the foundation issues. Once again, this doesn’t mean you will need to pay cash because using the FHA 203k loan is as good as paying cash for that property.
Foundation issues are simple fixes so don’t let yourself say “I really might have considered that property but…” Let the FHA 203k loan fix whatever might have kept you from buying that home. It’s also a great loan for those of you who currently own a home and are experiencing foundation issues or any other need to update or expand.
When speaking about HUD homes it’s also important to note that it’s not a great idea to overbid. Sometimes it’s necessary, especially when it’s a seller’s market, but any overbid will be due at closing in cash. HUD will require that you show you have the additional funds before they will accept the contract. These funds will be added to your required down payment of 3.5% and your closing costs. Just something to keep in mind!
Call me today and let’s talk about how we can help you with your new home purchase. These are great homes and often you are able to purchase in a great equity position but we must follow HUD’s procedure to make for a smooth transaction as well as the post closing with regards to the foundation repair using the FHA 203k rehab loan.