(Washington, D.C.) HUD is urging real estate agents working with buyers to look at FHA's new 203(d) Home Repair program, saying it loosens the agency's demand that homes meet certain repair standards before an FHA-insured loan is granted.
In the past, some buyer agents have not encouraged buyers to use FHA financing because of concerns about FHA's pre-sale repair requirements. The new Streamline(K) Limited Repair Program, however, permits borrowers to add $5,000 to $15,000 to the loan amount and make the required repairs after loan closing.
The new product can also be used for other repairs that the new homeowner wants to accomplish without the need for an additional loan.
source: The Real Estate Professional