K.M. Minemier & Associates is a certified Woman Owned Small Business (WOSB) engaged in full service real estate asset management and marketing.



September 30, 2019

Many buyers shy away from properties that need repairs. Uneduacted agents do not assit the buyer populations in this matter either.   When purchasing an asset from HUD there are many benefits to an FHA buyer.  One of the best valued benefit is allowance of up to $10,000 in repairs. These repairs can be escrowed into the loan which eliminates the majority of condition concerns. 

With this benefit most HUD assets can be purchased through a FHA 203(b) repair escrow product. This product will not allow for cosmetic improvements, only repairs required for functionality and safety enhancements of the home. Additionally, this loan can be joined with the $100 down program offered by HUD and many state first time buyer programs which makes the purchase exponetionally affordable. 

If repairs exceed $10,000 to bring property standards in line with qualification or there is a desire for cosmetic updates to the home, then the loan program available for buyers is a FHA 203(k). This program allows for extensive repairs and cosmetic improvements at the buyers discretion as long as the final results will fall in line with an updated appraised value for the property.

Many agents shy away from these loan types mainly due to lack of education and experience. With this hesitation of agents thus creating hesitation of their buyer clients. In fact, many may simply state the property will not meet condition standards and eliminate it before further investigation of options. Therefore it is vital for the agents and buyer populace to educate themselves on the options available to them before they start their property search.

HUD assets with condition factors need not create fear in todays market place. It truly is a false fear, as you can see, for most problems do have a solution if the parties involved are willing to look for them. Being able to put your own personal touch into a property makes it feel even more like a home when you move in. Don't let your fears stop you from your dreams of home-ownership.


Christy Cj Pace


Pace Probity LLC dba HouseSold Realty

Knoxville TN



Back To Article List