Buy a Fixer-Upper with a FHA 203(k) Loan And Get “Like New” Results!
Does the home you are selling need repairs? Don’t have the money to make those repairs? There are alternatives to marketing your home to home-buyers who can use a renovation loan and make the needed repairs. We are seeing more and more of these loans as short sales and bank owned properties where there are no monies for repairs, yet homes have tons of potential if repairs could be made. As new construction specialists, we see the value in renovating homes, whether for an investment property or a home. We are here to assist you with assessing a home’s value in it’s “as-is” condition.
Selling a home that may need updates or significant repairs can be challenging. You may find that the current real estate market is providing you with more home-buyers who want a good deal, but don’t have the cash available for a traditional down payment, or the funds to make necessary improvements. An FHA 203(k) renovation loan can help you sell those homes and help more buyers purchase affordable housing. Down-payments are low on these loans making them affordable to home-buyers.
What is a FHA 203(k) Loan?
The FHA 203(k) loan is intended for qualified buyers who want to purchase a home that may require some updates. A buyer must qualify for the loan which is usually the purchase price plus the cost of repairs and renovation costs, and is a single loan. Our team will help you acquire the estimates for repair, using licensed contractors and renovation specialists. Approval of a loan may involve estimates of repair and letters and documentation from qualified contractors. The FHA 203(k) loan can cover a variety of upgrades, including health and safety issues, living space enhancements and expansions, or repairs to damaged roofs, Heating and Air systems, within the property. The FHA 203(k) loan is only offered to owner-occupant home-buyers.
Partnering with us as your link to licensed contractors who can supply you and your lender with renovation and repair estimates is critical. Realtors should have a general knowledge of construction and resources for home buyers looking to purchase a fixer upper. Some repairs are allowable for home-owner such as painting, sealing, caulking, etc. However anything structural inside or on the exterior will require licensed contractors and permitting. Homes with lead-based paint and asbestos materials require State Licensed specialists and carry large fines over $25,000 for unlicensed removal and disposal. Again, partner with new construction specialists as your Realtors and learn how you can turn what looks like a dump into an adorable home fit for your family by using a FHA 203(k) loan.We hold the GREEN designation as well, so helping you understand how GREEN features and energy saving features built into your home will save you money now with tax credits and over time with energy savings is something we can explain as well.
Are you interested in buying a property in need of repair? Want to know where or how to begin? Contact us about “Debbie’s Deals of the week” and make an appointment for a free buyer consultation and a FHA 203(k) loan pre-qualification today.
Begin your Search for Tallahassee, FL short sales, foreclosures, bank owned and distressed properties here: http://search.homesalesoftallahassee.com/search-city.php. Search under “Advanced” options.
2 thoughts on “Thinking of Buying a Tallahassee, FL Fixer-Upper? Consider a 203(k) Renovation Loan”
Hi Debbie! I’m in the middle of two of these right now and they are just the cat’s meow for buyers of distressed properties! I plan to do more of them in upcoming months; we’re enjoying working with the contractors and seeing the amazing transformations. (Love your Green Acres ani-photo too!)
Thanks Deb – Right now, Wells Fargo is the only lender in the Tallahassee area offering the 203(k) renovation loans. Who offers them in your area?