I learned more about this program when I was in Dallas. This program was offered to all of the brokers. Some chose to study other subjects. However, it is my opinion that we really need to KNOW how to use this loan because of the type of property we need to finance.

You see, when the typical buyer wants to buy a property – house or condo – it is usually in decent condition. It is not trashed. Unfortunately however, many of the bank owned properties are in bad condition for one reason or another. No one wants to buy a property that needs alot of money to repair it unless you can pay very little for it.  An entry level buyer is forced out of the market to a cash investor buyer.

The question arises: Who will finance this property?  The FHA 203 K program offers a solution. This loan will finance new paint, new carpet, appliances, windows, kitchen, roof and more. The repairs are financed into the new loan. The property is appraised as if it were repaired. Therefore if you find a property that has no kitchen or no bath and you want to buy it, YOU CAN get a loan.  Therefore, when you visit a house for sale and want to make an offer, the term “All repairs to be in buyers’ loan” should be in your contract offer. This is a great program, and I continue to work towards obtaining my certification. I do not do loans but I really think every broker should know how they work so that we could all be of best service to our clients who need us.