Friday, November 14, 2014

How to Finance a Fixer-Upper

We can help you get your own fixer upper!
There are many reasons why you may want to buy a fixer-upper. Buying the "worst home in the best neighborhood" can often provide a great return on your home buying investment. Maybe you just like the challenge of bringing a home back to life, or you see you a fixer-upper as the ideal way to customize an existing home into a home of your dreams.

In the past it was a challenge to get financing for a home that was in less than stellar condition. The lender's appraisers would never qualify a home for a mortgage that needed major repairs, so if you were looking at a fixer-upper, you often had to pay cash or find non-traditional financing. But my how things have changed!

The FHA no offers two "fixer-upper" loan products, called the FHA 203K and FHA 203K Streamlined. The standard 203K is given for properties that need structural repairs such as moving walls or replacing a roof. The Streamlined 203K is for homes that don't need structural repairs, like new floor coverings or new appliances. Other items the standard 203K may cover are:
  • Bathrooms
  • Kitchen Remodels
  • Plumbing
  • Siding
  • Additions (even including a second story)
  • HVAC
Both the standard and streamlined 203K are available now, however the application process can be tricky, which is why you will need a GREAT loan officer to help you navigate the process. 

To find out more information on these exciting loan products and how the Foster Beckman Group can help you get into a fixer-upper, please contact Mary Kay at 702.686.2695.

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