Most Bend Oregon homes for sale are exceptional. Many are new or fairly new. And designer touches add to the appeal. But then there are the homes with what we politely term "deferred maintenance," either because of a foreclosure in which the owners were angry at losing their home or homes which the owners had little or no money to perform routine repairs. You can get great deals AND get some money to rehabilitate the home!
Welcome to the FHA 203(k) or 203(k) Streamline Limited Repair Program. This allows homebuyers to finance up to an additional $35,000 to improve or upgrade their home within the first year after closing.
This loan can be used to buy or refinance one to four single-family residences (single to 4-plex) including foreclosed properties. It combines the funds to purchase or refinance with the funds needed to repair or rehabilitate the property. Repairs are completed after closing. If funds allocated are not used in their entirety, the excess goes to reduce the principal balance owed on the mortgage by the buyer. There is one closing with rehab funds escrowed and disbursed as the work is satisfactorily completed. You can update homes, correct health and safety issues or pay for higher cost items sucha s a roof. The property value must be sufficient to justify the purchase price plus rehab costs. Up to $35,000 can be borrowed by the buyer.
What you CAN do with this program: Repair/replace and/or upgrade roofs, gutters, downspouts, HVAC, plumbing, electrical, flooring, decks, patios, driveways, windows, septic. Minor remodeling (not structural) of kitchens, etc. Painting interior and exterior. Weatherization. New appliances (often the old ones are gone are broken). Accessibility improvements. Connection to public water or sewer.
What you CANNOT do with this program: Major rehabilitation including structural changes; room additions; repair structural damage; manufactured home foundation repairs; landscaping; work that is scheduled for three months or longer; start work more than 30 days after closing; lead-based paint stabilization.
For further information on this FHA insured program, please call me or email me for more details, and I can refer you to loan brokers with experience handling 203(k) program loans. It is not a new program, but many loan officers have not funded under the program, which can be tricky and requires (as is true with most government programs) tons of paperwork!