Dealing with today’s Real Estate inventory can be challenging what with quite a few more bank repo’s out there. Some of these properties are in dire need of remodeling but are great deals. Most consumers do not have extra cash though to “rehab” these properties and some will not even finance at the state they are in. This is where the 203k loan comes into play. You can purchase a home close on it then get the money needed to fix it up all from the original loan. There are basically a couple of different kinds of 203k loans one for “minor’ or non-structural repairs and one for more “heavier” repairs like fixing foundations, moving wall, etc.
With the “minor” repair loan you can receive up to $35,000.00 above the purchase price to improve the property which in some cases gets the house up to a “livable” state. We are seeing more and more properties that are in need of these types of repairs and is really the only way to get these properties sold.
The process is fairly simple but you will want to find a lender that knows what they are doing. After you locate a property and go through the paperwork process between you and the bank you then go through the loan application process beginning that process. Then you will need to get your contractor out to the property to go over the items that need fixing and get an estimate for these repairs. Then submit that to your lender which in tune will review and use that list to get the appraiser to review and inspect for the bank. After that is complete the loan package can be submitted, approved (hopefully) and then onto closing. After the property is in your name the repairs can begin and you will get the additional funds from the lender to pay for them. After that move in!
To take advantage of this lending product give me a call and we can review your goals and look for that special property that fits your needs. I look forward to talking with you soon. Bob
