This is an FHA loan program that gives you money to spend on renovations after closing. You pay 1/4 to 3/4 points higher on interest, the repairs have to be approved before closing, and the work needs to be done quickly once the home is yours.
There are 8 homes in Longleaf under contract waiting to close. 2 are built before 2010, however, these numbers are a bit skewed since they were either short sale or bank owned. They were asking $101 average per sq foot when they went under contract. The 6 remaining were asking $135 per sq ft when they went under contract. Should be interesting to see what all these actually close out for.
Even though you are putting up a deposit there are assurances for you, the buyer, as well. It’s important to keep in mind that a deposit is not an extra cost associated with buying a home. This will be credited towards your closing costs or down payment at closing.