What does a buyer do if the home doesn’t qualify for an FHA loan?

How does a buyer who cannot afford a hefty down payment take advantage of the great home deals on the market today?  Most of the lower priced homes in the $50,000 to $90,000 price range do not qualify for a straight FHA loan because they need work.  So what is a buyer to do?  There is no need to fret because you may be able to qualify for a home by implementing FHA’s "Streamline (K)" Limited Repair Program!  Homebuyers will be able to make repairs up to $35,000 before moving into the home under this program.  The program permits up to $35,000 of additional financing into their mortgage so repairs can be made to bring the home up to FHA standards as identified by a certified home inspector or FHA appraiser.  A buyer can use the loan for what is considered "simple’ repairs, meaning repairs that do not involve the use of an engineer or an architect.  Basically, it will allow you to repair or replace existing structures such as roof replacement, HVAC systems, flooring, minor remodeling of kitchens, plumbing and electrical systems, painting the interior and/or the exterior, purchase appliances, etc. 

So buyers, there is no need to give up!  There is a way to get financing on properties that need work as long as you do your homework.  A good Realtor and mortgage broker is essential to a successful home search!

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