Bridget's Blog



Do you want to buy a  "Handyman Special"?  Have one to sell?  Most of them are priced below "Fair market value", and sellers either don't want to do the work or can't do the work to get them "market ready".  Home that are selling quickly in my area are homes that are priced right and show like a model, or those that offer what the buyer perceives as a "great deal".

Picture this:  Grandma has just moved in with one of her kids.  She has lived in her home for 60 years and had no need or no desire to paint and the carpet is the lovely orange shag she bought in the 70's.  If it ain't broke....  Well now, the kids have to sell the home and live out of town, or don't have time, skills or desire to do the work.  They want to sell fast but don't want to give the house away.  Who is going to buy that house?  Can't you just get a loan for the value of the property (sales price)?

and this....The buyer only has saved enough for a downpayment, but hates the color of the walls and the carpet.  Will they pass this great house by that just needs some minor cosmetic improvements?  What if it needs up to $35,000 in repairs?  Bye-bye dream home....bye bye. 

But wait, hold on, haven't you heard about a great loan program that offers buyers a chance to get a loan for the "As is" price PLUS from $5,000-$35,000 in repairs/updates/improvements?  It's a 203KS FHA loan.  This government backed fixed or adjustable rate (not too many adjustable rate options that make much sense right now) 30 year mortgage, can include the cost of repairs, as long as they are not structural. 

From Mortgagee letter  2005-50:

What improvements are eligible under the new Streamlined (k) program?

 The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required.  The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:


•·         Repair/Replacement of roofs, gutters and downspouts

•·         Repair/Replacement/upgrade of existing HVAC systems

•·         Repair/Replacement/upgrade of plumbing and electrical systems

•·         Repair/Replacement of flooring 

•·         Minor remodeling, such as kitchens, which does not involve structural repairs

•·         Painting, both exterior and interior

•·         Weatherization, including storm windows and doors, insulation, weather stripping, etc.

•·         Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens

•·         Accessibility improvements for persons with disabilities

•·         Lead-based paint stabilization or abatement of lead-based paint hazards 

•·         Repair/replace/add exterior decks, patios, porches

•·         Basement finishing and remodeling, which does not involve structural repairs

•·         Basement waterproofing

•·         Window and door replacements and exterior wall re-siding

•·         Septic system and/or well repair or replacement


Warm Regards,

Bridget McGee  Maryland Mortgage Mama  NMLS# 196068  SWBC Mortgage.   410-960-2061 EHO or


If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure! 

If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest.  Please contact me at 410-960-2061.

Comment balloon 6 commentsBridget "Mortgage Mama" McGee • October 13 2008 11:06PM
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