Listen up buyers! The FHA has an underutilized program that could be a good option for many of you. I am sure that when you are looking at houses to purchase you find some that would be perfect if only the outdated kitchen was updated or maybe it would be great if only it had a deck off the back of the house. Other times you look at properties that may be short sales or foreclosures that need some basic sprucing up such as painting, carpeting, new appliances etc.
There was a time not so long ago that you would have just closed and gotten a home equity line of credit at the same time, which would allow you to take care of improvements or repairs. With Home Equity lines requiring much more equity in the property, those buyers with limited down payments may think they have limited choices.