It’s a buyers market. There are so many homes to choose from and you just can’t find the right home that suites your needs?
Skip Schekler is an industry expert in the FHA 203(k). He completed Hundreds of 203(k)s as a Loan Officer and has published articles on the subject . He Authored a 3 Hr. DRE Approved CE Class called "Sell more homes with Renovation Loans" Skip has many REO industry contacts. His previous experience included being a licensed contract in 1987, licensed real estate agent since 1992 and a licensed broker since 2008. He also was previously the Vice President of a Construction Lending Department.
I have good news for you, the government has a unique loan that will allow you to buy a home that is in the right neighborhood, but needs fixing up. This loan is insured by Federal Government all you need to do is provide a bid from a licensed contractor, or an national home improvement store like Home Depot or Lowes for all the work you want to do and they finance your home including all of the home improvement costs:
Example: Let’s say you find a home for $130,000; but it needs new paint, carpet, windows, doors and new kitchen and bathroom countertops and appliances. All of the work is going to cost about $30,000.
Your wife tells you that she likes the street, the neighborhood, the school district, the house is nice from the outside; but it needs too much work and you don’t have the money to fix it up once you move in. It makes no sense to charge up your credit cards with $30,000; the minimum monthly payment on $30,000 in credit cards is about $750.00.
Nobody wants to get strapped down with that kind of credit card debt.
In comes the FHA 203(k) loan. You can buy that house and get one loan for $160,000 which includes the purchase price of $130,000 plus $30,000 in repair costs. (Less 3.5% down payment).
When you build in the repair costs into your loan interest rate mortgage, the additional monthly payment is about $198.00/month more. (Which is tax deductible)
This is a “full doc” loan which means you must provide all of your income and asset documentation as well as have fairly good credit, it doesn’t have to be perfect, but you must be able to show that you have been responsible with your credit the last 24 months.
There is a renovation loan for investors, but it is a conventional renovation loan and requires a larger down payment.
For more information about this unique FHA 203(k) Renovation loan, please visit my website http://www.REOLenders.com or call me 714-681-3768.