FHA 203k Loans: Buy it, fix it and finance it all in one

By Jason • January 19th, 2010

I read a great news article on RISMedia earlier and if you are considering a home purchase, you MUST read this:

Changing the Way People Buy Homes: Using the 203k Program to Purchase ‘Dream Homes’

In many cases, homes that would qualify for the 203k loan are in nice areas but have aesthetic problems. This program—because the home improvements are built into the loan—opens the whole market to the average home buyer.

If you have ever found a home that with just a little elbow grease could be a great home for you, then this loan is a great opportunity for you. Imagine this scenario: You find a home you like but it’s older than you wanted. The windows really need to be replaced and you want to update the kitchen and baths. The problem is that you don’t have the $25,000 you need to to the updates. The FHA 203k loan allows you to finance those updates into your loan.

As an agent, I am sick about buyers passing an opportunity to buy a great house for them over a for repairs and updates. The thing is, the house becomes your own and you get to enjoy the profit when you go to sell!  If you need help, let me know. You might just need an agent with vision and connections to reliable contractors to work quickly!

Imagine this home  with a new kitchen, new baths, new paint inside and out and updated landscape. I figure you might spend 5,000 for each full bath (10k), 15,000 for your kitchen,  3,500 for interior paint, 2,500 landscape, 4,000 for miscellaneous repairs. Kick in another 5,000 for flooring and you are all done. This is a drastic example but the numbers are very real. This way, you are into this house for $225,000 turnkey and it’s the way you want it.

For more information on the 203k loan program, visit www.hud.gov or www.re-buildusa.com.

If you enjoyed this post, make sure you subscribe to my RSS feed!
Comments(0) Tips
 

Leave a Comment

« Raleigh’s job forecast helps steady housing prices | Home | Changes to FHA Loans: How will Raleigh be affected? »