Thursday, September 29, 2011
Introducing JAMCO 7 – a new program for bank-owned homes
The market is full of foreclosed homes, many of which are bank owned and in need of repairs, sometimes before they can even be lived in. Until now, the only option for homebuyers was to try to get an FHA 203K loan. The 203K loan program is a great way to get the money needed for home repairs, but it has its own set of issues and fees/costs, plus many buyers just didn’t qualify. Click here to go to the HUD site and read about the 203K loan program. Now there is an alternative to explore if you want to buy a bank-owned house that needs some minor repairs, or maybe a new roof.
Introducing a new John Adams Mortgage program called The JAMCO 7. The JAMCO 7 allows you to close on a bank owned transaction, with John Adams, prior to some repairs being done! The repairs and our re-inspection need to be done within 7 days after closing. A roof, some painting (non lead based paint) and cracked windows are just a few of the items we will allow to be done after closing. John Adams will allow this to be done on FHA and Conventional deals.
There are some restrictions with this program as follows:
1) The buyer would need to put up to 1.5x's the estimated repair amount in escrow (John Adams holds the money). When the repairs are done, we send the appraiser out to verify and reimburse the escrow to the buyer
2) Must be a bank owned property. (No redemption period)
3) FHA and conventional loans only.
4) No VA or MSHDA loans are allowed
5) "Major" repairs are not allowed, including foundation, mold and lead base paint issues.
John Adams underwriters and management holds the right to make the final decision. They have, however, done quite a few of these over the past 12 months and feel very comfortable in what they can, and can't, do. Bank owned homes are still a large part of this market. The JAMCO 7 may help more buyers with financing on homes that they otherwise just couldn’t buy.
In the Milford, Commerce, Highland, White Lake and West Bloomfield areas, call Agnes Miesch of John Adams Mortgage at 248-684-5581for more on this great new program.