A few days ago I blogged about FHA mortgages and how I felt that these mortgages would be the wave of the future for borrowers with tight credit. I thought I would add another bonus to FHA that I did not mention. I receive a lot of calls and e-mail from people that are wanting to purchase a REO (bank owned) home that needs work. Through FHA, there is a program to receive the funds needed to purchase the home, as well as repair and rehab the home. The program is called 203k. The 203K program is administered through HUD and is designed for homes that need to be rehabilitate. This is a little known program that can be difficult to apply for and comply with. To cut through the red tape, I recommend using a 203k consultant who is approved by HUD who will assist with receiving quotes from contractors, applying for the loan, and complying with the guidelines. This service is well worth the $500-600 fee. The 203K is the perfect loan for someone looking to purchase a REO that needs to be repaired. Contact me for more information about this program.