There are special loan options for first time home buyers when looking at foreclosed or short-sale properties that need a little, or a lot of work. Homes that are in need of repairs don’t need to be overlooked when you’re shopping for your first home – even if you’re not a ‘handyman’. There are mortgage loan options available that still allow you to get into your first home with a minimal down payment AND allow you to fix some things that may need repair.
You’ve heard all of the stories…you can get a great deal on your first home if you’re willing to do a little work. If you’re anything like most first time homebuyers, adding home repair on your list of things to do on top of everything else that moving into your first home entails seems a little too much. It’s okay! There are two different loan types that you may qualify for that will allow for you to hire a licensed contractor to make the home what you need it to be.
I’m here to dispel the myth that a 203K is not an ‘easy way’ to finance your home purchase. It’s a whole lot easier to fill out a little extra paperwork and work with a licensed contactor and experienced Real Estate Agent and get the right loan upfront that gets the home repair needs taken care of right away, than it is to get into a home that is in need of repair and attempt to afford or finance these items by other means. Often times, first time homebuyers are steered away from these loans by lenders themselves because they are more time intensive for the Loan Officer and they require a whole lot of extra care and attention to detail. Great reason to steer a client away from their dream! Do a little extra work, give it a little extra attention and help a first time homebuyer open up a host of properties that would otherwise not be available to them or cause financial concerns down the road!
We offer 3 types of 203K loans:
1) FHA 203K(s)/CASA Loan – This is a mortgage revenue bond loan through Minnesota Housing pilot loan program that few lenders participate in. It allows for first time home buyers who qualify under their CASA program guidelines to finance up to $15,000 in home repair or rehabilitation costs.
2) FHA 203K(s) Loan – This is a mortgage loan program for any FHA home buyer, whether or not they are a first time homebuyer. You must qualify under normal FHA loan guidelines and can finance up to $35,000 in home repair or rehabilitation costs.
3) FHA 203K Loan – This is a mortgage loan program for any FHA home buyer, whether or not they are a first time homebuyer. You must qualify under normal FHA loan guidelines and the amount you can finance is only limited by FHA’s maximum allowable mortgage amounts in the county you are buying in. (In Dakota and Scott Counties for example; that limit is current set at $365,000)

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