Hi all! School's back in session! Now it's time to get back in to that "school routine" for those of you that have school-aged kids.

With that in mind, one thing I've learned is that there is always something new to learn. Even with how the real estate market works, and how loans works. Markets change, so we learn how to deal with that. The mortgage industry also changes, so we learn what we can do with those changes.

With so many short sales on the market right now, it's smart to have some strategies in your pocket. As I've said before, short sales and foreclosures can be good deals, you just have to make sure you do your homework and determine how much work you are willing to do. I've seen some short sales that are move-in ready, while others need everything, including kitchen cabinets, walls and appliances.

So if you've found that home, it's a good deal, you have money for the down-payment, and even the closing costs, but that leaves you with NO funds to put in new flooring and painting the inside (many of these short sales only require a deep clean, new flooring and paint). So the question is "HOW can you buy a home like this?"

Well, you can get an FHA 203K Rehabilitation and Home Improvement Loan. Keep in mind, not all lenders are signed up to offer these, so if this is what you want, make sure you ask around. With an FHA 203K rehab loan, you can get this on a home you already own, or one you are getting ready to buy.

In a nutshell;

- Must be on an owner-occupied property (up to 4 units)

- One time closing with up to 5 draws

- 30-year fixed rate loan

- Low down payment requirements on purchases

- Flexible requirements--down to 580 credit score (changes 1 Oct)

- Up to 6% seller concessions for closing costs

- Non-occupant co-borrowers allowed

These funds can be used for rehabilitation, structural alterations and reconstruction, modernizing and remodeling, replacement of plumbing, electric, wells, and septic systems, flooring, roofing, gutters and downspouts.

There is a minimum of $5,000 in rehabilitation costs in order to get one of these, and you do need to get estimates from qualified contractors. You don't have to actually use these contractors--but you need the estimates from them. If, for some reason, you don't use all the funds you asked for, it will go towards the principal of your loan--as a principal reduction.

This is a fantastic way to get in to some of these homes out here right now. With so many short sales on the market, this is one way for someone with limited funds to get in to the home that needs a little "TLC" as we call it.

If you have questions, you can talk with your realtor if you are currently working with one, or call around to some lenders to find out who can do these loans, and what you need to do in order to get one of these.

Good Luck!