Joel Barth

By Joel Barth:

Did you know you can use Section 203(k) FHA Loans to Buy and rehabilitate foreclosure listings? Well great news!! You Can!! Section 203(k) mortgages allow you to purchase or refinance and rehabilitate a home at least 1 year old. A portion of the loan proceeds are used to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed.

Everyone, who has a satisfactory credit record, enough cash to close the loan, and sufficient steady income to make monthly mortgage payments can be approved for a section 203(k) mortgage. The improvements financed with Section 203(k) mortgage proceeds must comply with HUD's Minimum Property Standards and all local codes and ordinances.

With an section 203(k) mortgage, you can make extra payments toward the principal when you make your regularly monthly payment. By making extra payments, you can repay the loan faster and save on interest. You can also pay off the entire balance of your FHA-insured mortgage at any time. FHA loans cannot exceed the statutory limit.

To get a section 203(k) loan, you need to apply to a HUD-approved lender. For more information about a section 203(k) program and other HUD's programs please contact your local HUD office. Each state has at least one office.

For Additional Information:

http://www.northwestcapitaladvisors.com

Seattle has fared better than most. We are now in the eye of the storm. According to the latest data by the NWMLS, residential property values in King County have declined 10% from Nov. 2007 to Nov. 2008 taking the median sales price for a single family home from $432,000 to $388,000. Unit sales declined from 1605 to 853 for the same period. Condos are showing more resilience with a 3% decline taking the median sales price from $290,000 to $279,975. In my experience, I would say about half of the new listings coming to market are short sales, reos, or foreclosures. I do not think this if reflective of the market just that the individuals selling now are primarily the ones that must sell. If this is the brunt of the damage it would seem Seattle is poised for a quick recovery over the next 24 months. Only time will tell. For addtional information, please visit my website at http://www.northwestcapitaladvisors.com