Financial Renovation Projects (FRP) Including FHA 203K

Many home buyers have little to no knowledge of a powerful option at their fingertips.

There are programs out there that will allow a buyer to get a less-than-desirable home and turn it into their dream home without having to have the money for renovations! Too good to be true you say? Not at all!

How many homes have you lost out to in a bidding war because it was “perfect” and it was also “perfect” for 20 other buyers thus driving the price and terms way up? How many nights and weekends have you driven around tirelessly looking at homes only to be disappointed because the pictures were deceiving or it really wasn’t in the area you like?

Now, let’s say you walk into a home and fall in love with the layout, love the area, and fits all your criteria EXCEPT it needs some work. A Financial Renovation Project (FRP) may be just what you need. There are a few different types available for FHA, Conventional and VA.

Conventional has what’s called a Homestyle loan (basically the same as FHA 203K). The process is the same as if you were pre-approved for traditional Conventional, FHA or VA. Example: If pre-approved up to $200,000 Conventional and you found a home that you could get for $150,000 then $45,000 could be available to go into a FRP (10% is held in reserve for unknown issues that may arise). It is all written under one loan…it’s not an equity loan or line of credit.

It usually still closes in 45 days and you reap the rewards of an updated home instead of continuing to bang your head looking for the “perfect” home.

This flyer gives a great overview though I can get you in touch with my preferred lender to discuss in more detail.