Buying A Fixer for Fun & Profit

                       

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FIXERS/INVESTMENTS/OWNER OCCUPIED

 

FHA's 203(k) program (For Owner Occupied)

First and foremost, loan programs and their guidelines change daily, so it is prudent to get your "ducks in a row" before proceeding.  This is not only a great tool for buyers in today's market but also sellers.  Listed properties in need of renovations/repairs are an excellent target market for this program.   

Sellers can give their buyers  a break-down of costs to renovate the listed property.  Agents can provide to prospective buyers for any of their listings information on this type of program.  Why not?  Would it help sell a property?  Would it allow the buyer to see past a property that needs a little T.L.C?

There are two types of 203(k) programs, streamline and full.  A full 203(k) involves structural issues whether renovations, repairs or additions.  A streamline 203(k) is renovations or repairs not to exceed $35,000 and nothing structural.  Repairs may include:

·         Paint, Carpet, Flooring, Appliances

·         Renovation of bathrooms, kitchens or any room in the house

·         Making a home handicap accessible

·         Two Draws: 1/2 at closing and 1/2 at completion of all projects.

·         Windows, Roof, Gutters or Doors


    Recently added are some programs for investors, I would be glad to provide information on these programs for you.  

     

    Investors:  Be aware that the magic number of "Financed" properties is (4) once your financing exceeds that number:

     

    1.  Loans are more difficult to find.

    2.  Down payment higher.

    3.  Interest rates higher.

    4.  Loan costs higher.