Banks are looking to unload these properties without the expense and hassle of making these repairs, so in many cases the buyer is in a no-win situation. They want to buy the home, but it cannot be financed because of the condition of the property. Not only do banks not wish make these repairs, they often will not let the buyer make these repairs prior to closing either. (This is not recommended anyway, because the sale might fall through, and the buyer would not recover the money spent.)

This is where the FHA 203k program steps in. With FHA 203k financing, a borrower can purchase a home in need of repair, finance the cost of the repairs into the loan, close the deal, and then make repairs afterwards. Not only does this program make it easier for prospective buyers to purchase the home they want, but it also may lead to getting a better deal. Generally, homes that are in need repair do not garner the same amount of competition for offers that homes in great condition do. Less competition means more negotiating power and better prices.

Overall, the FHA 203k is a great tool for the Las Vegas mortgage and real estate market.