Fannie Mae recently announced that they will be discontinuing their HomePath loan program. For those Knoxville home buyers interested in buying a foreclosure, a HomePath loan offered an opportunity to get into a home with a minimal down payment, with an opportunity to finance repairs, if necessary. So, what does this mean for Knoxville home buyers interested in buying foreclosures?
For those still interested in using a HomePath loan to buy a Knoxville foreclosure, they must be sure to get the home under contract by October 6th, 2014, with a contract fully executed contract by signed by all parties. Home buyers interested in buying Fannie Mae Foreclosures after that period will still have the option of buying a home with the help of an FHA, VA, or conventional loan.
The good news, though, is that home buyers interested in buying a Knoxville foreclosure still have the opportunity to renovate it with the help of a 203k FHA loan. Homeowners are able to make large repairs with a 203k loan or they can make minimal repairs, depending on the home. The great thing is that a homeowners can get into a foreclosure with as little at 3.5% down. With the help of a 203k loan, you can renovate your dream home and wrap all of the renovation costs into your Knoxville home loan.
There are two types of 203k loans. The first type of 203k loan that an be used to repair a West Knoxville home for sale is a streamlined 203k. Streamlined 203k loans are capped at $35,000 worth of repairs and cannot involve structural repairs. There is no minimum amount for repairs. The second type of 203k loan is a traditional 203k. It must require up to $5,000 worth of repairs and is used for any type of structural repair. With both loans, repairs must start within 30 days of closing and must be done within 6 months.
Are you looking to buy a Knoxville short sale or foreclosure? We’d be more than happy to help in anyway that we can. You can contact Rick at 865-696-9002 or via email at [email protected]. You can contact Kati at 865-392-5880 or via email at [email protected]. Also, be sure you check out our home search page to see what short sales and foreclosures are for sale in the Knoxville area.