FHA Program Offers Financing Solution for Stock of Aging Homes

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The FHA 203(K) finance program is a great way to buy a home that needs some major repairs or the upgrade your existing home during a refinance. For you homeowners that need to make your home more handicap compatible these could be the ideal solutions. For a more detailed look at this subject please read the article below.

The FHA Condos Approval Company, Inc.

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Seventy-one percent of single-family homes in the United States were built before 1990, according to a new industry report from RealtyTrac.

This older housing stock comes with less competition from other buyers and lower price points. Year-to-date in 2013, 60 percent of residential transactions have involved homes built prior to 1990, RealtyTrac reports.

“The high percentage of homes that are at least 20 years old and likely in need of some major repairs is eye-opening,” said Jake Adger, chief economist at RealtyTrac. “However, given the low inventory of homes available for sale in today’s market, this challenge of aging U.S. housing supply can also be an opportunity for buyers looking for a bargain and homeowners looking to update their living space and improve the value of their homes.”

Adger notes that the Federal Housing Administration’s (FHA) 203(k) program is the government’s answer for the nation’s aging housing supply. Owner-occupant buyers can take advantage of the 203(k) program to finance the purchase, rehab, and upgrade of an older home, while homeowners can take advantage of the program to roll renovation costs into a mortgage refinance.

Michael Mahon, EVP and broker at HER Realtors in Columbus, Ohio, says homeowners should consider programs to invest in modifications and repairs as the nation’s housing inventory continues to age. “The FHA203(k) loan program is a great example of how community and housing redevelopment efforts can provide a higher rate of return on equity for homeowners,” according to Mahon.

To read the complete article please use the link below.

Stock of Aging Homes

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