In the News & Local Events

Real Estate Secret: Fixer-upper homes have special FHA loan program
The word "as-is" can indeed be one scary phrase. Especially when buying a home in today's market where foreclosures and short sales that need fix-up work are plentiful. But a little-known Federal Housing Administration loan program that's been around since 1978 can help take the sting out of "as-is." Only 219 borrowers took advantage of the FHA's 203(k) program in 2009. Not that many lending and real estate professionals are aware of the program, say observers. Last year, Tom Meyer found a classic Oakland, Calif., home built in 1925 near Mills College he liked a lot. As a short sale it was priced right and about half the original asking price. Trouble was, the place needed some fix-up work _ foundation improvements, dry rot work, a new roof over the garage and other improvements. With the help of the FHA's 203(k) renovation financing loan program, Meyer folded about $100,000 worth of repairs and improvements into his $422,000 mortgage. He had bought the home for $320,000.