GET A 203K LOAN AND GET THE JOB DONE!!!
203K COMING ON STRONG IN THIS ECONOMY
Perfect location, perfect house but the updating would take so much money. Would it be worth it? Well, it may just be.
OK, I have to admit, I went into this seminar a little skeptical with everything that is going on in our economy. But, I was pleasantly surprised to hear about something old (Being the 203K) having new life.
FHA 203K has been around since 1978, but not used much, until now. This program lets you purchase a home and repair the home and everything is figured into your payment. You can even do additions, or second stories, repair that septic system or well! This program covers just about anything you can think of within reason.
There are a couple of things to think about when using this program. First, it will improve the looks of the home itself. Second, all the remodeling to be done is added in prior to close. So, you are aware of the bottom line of this home (after the remodeling is done).
The way it works is this. Say, you find a nice home around 70K, in a great neighborhood, the location is perfect for you but, it just needs to much work. Enter..203K…say you need an additional 30K to have repairs done on the home.
Enter the General Contractor for this job, and have him get estimates for what you would like to have done. Visit Lowes, Home Depot, among others to see what repairs can look like after they are done. New bathrooms, kitchen, etc. Many of these places will do sample lay outs for you as well as give you the installation charges. Remember the appraisal on this home will be done on “after the improved value” and not what it is at time of purchase.
They will add the repairs into the sales price of the contract. So the price now becomes $100,000. After you pay your initial down payment of 3.5% the base loan would be $96,500. $30,000. Is in escrow for you to use for your remodeling.
It doesn’t stop there; any work that needs to be done must be started within 30 days and completed by 180 days.
There is a couple of catches though. First, you must use licensed, bonded, and insured contractors for the remodeling. Some things you are allowed to do yourself however. If you decide to do this yourself, the money that you have in escrow for this job, will be paid on your mortgage.
Here’s another one, say you’re a cash buyer, but you have no money for fix up. You can finance with a 203K loan and get the home up to par. New windows, doors, flooring, appliances, almost anything you need with the exception of a pool or hot tub.
Yes, I have to admit I was really surprised and will be adding this to my list of recommendations!
Katie Creek
727-415-4669
Florida Luxury Realty
Email: kdsrealestate@yahoo.com