Inspection Perfection Helps Home Buyers with HUD 203K Program

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The once dormant HUD 203K Program is now ideal home buyers purchasing bank-owned properties in need of repairs.

I work with the buyer, contractor and lender to manage the construction loan process. I'm the eyes and ears for HUD

Some of the best home values are bank-owned properties that need repairs. The Housing and Urban Development's (HUD) 203K program allows home buyers to save money by adding construction costs to the standard FHA home loan. Inspection Perfection, a San Diego company, is well positioned to help buyers who want to utilize the 203K program.

In the recent past, when home values skyrocketed, the 203K program became ineffective when home values exceeded the loan limits of the program. For San Diego County in 2006 and 2007 there were no 203K loans processed.

For 2009 in San Diego County, the FHA loan limit is $546,250. Many bank-owned properties with the added repair costs are within this limit.

The 203K program is broad in the scope of work and eligible properties. Eligible properties are single detached homes, multi-tenant, mix-use and now condos. The construction loan starts at $5,000. Simple rehabbing like, painting, new flooring, fixtures and appliances and the total amount under $35,000 should apply under the 203K Streamline.

Rehab costs over $35,000 or extensive rehabbing, like structural modifications are processed in the standard 203k program. This requires a contingency reserve starting out at 10%, a consultant and inspection draws.

Will Johnson with Inspection Perfection is a qualified HUD 203K consultant. "I work with the buyer, contractor and lender to manage the construction loan process. I'm the eyes and ears for HUD," said Will Johnson. "My 203K consulting service is quickly growing helping buyers through the process."

It's ideal for first time and owner-occupied buyers interested in buying bank-owned properties. This program is not available to investors at this time.

About Inspection Perfection
Founded in 2005, Inspection Perfection offers residential home inspections serving the entire San Diego County. For more information on the 203K program, please call (888) 552-4677 or visit them online at http://www.sdinspection.com.

HUD Website
For more info of 203K program, please visit - http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm
For more info on 203K streamline, please visit - http://www.hud.gov/offices/hsg/sfh/203k/203kslrp.cfm

Media Contact
Will Johnson
Inspection Perfection
Phone: (619) 295-9455

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