Buy a Fixer "Upper" With an FHA Loan

Written by Posted On Monday, 22 June 2015 18:53

 

 

 

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www.themedinarealestategroup.com

www.themedinarealestategroup.com

Buy a Fixer “Upper” With an FHA Loan

If you want to know how much your house will sell for in South Florida, Broward County go to Home Value or call Irene Medina.Realtor at 954-439-4851. 

Many real estate professionals possess stories of clients who simply can’t appear to look over a home’s minor imperfections, whether they are ratty floors or sagging screens. Then, there are actually those clients who’s ablility to visualize the chances of a property that’s seemingly simply being held up by a prayer.

If you fall into the aforementioned category but are short on funds, here’s a remedy: a government-backed loan that covers not just the purchase price of the home, but the price to rehab it as well. It’s a mortgage offered by the Department of Housing and Urban Development, known as the Section 203(k) Program.

 

The Possibilities

www.themedinarealestategroup.com

www.themedinarealestategroup.com

The 203(k) loan is best known for allowing the borrower to rehab and repair a home. But it has some other uses as well. Borrowers have tried the loan to:

Change single-family homes into multifamily dwellings, with up to four units.

Change multi-units into a single-family home.

Move a house to purchased land.

If you’ve found a house that needs just a bit of work instead of an entire rehab, HUD has a 203(k) streamlined program. This program includes enhancements, upgrades or repairs with expenses that do not exceed $35,000.

A few of these enhancements may include a kitchen remodel, interior paint and new carpeting – ideal for the potential customer wanting to spiff up a property before placing it in the marketplace or perhaps the purchaser who would like to make her new house move-in ready.

www.themedinarealestategroup.com

www.themedinarealestategroup.com

The Home

With many government financing, not only should the buyer meet the requirements, but also the home. A dwelling’s eligibility for the 203(k) program includes:

It must be at least one year old.

If the home is likely to be demolished, the existing foundation must remain.

If the program is being used to rehab a condo, you need to prefer to live in it, and all work must be restricted to the interior of the unit.

 

The Purchaser

Qualifying for the 203(k) loan is similar to the specifications for a Federal Housing Administration loan. The borrower must:

www.themedinarealestategroup.com

www.themedinarealestategroup.com

Show a steady employment background, ideally with precisely the same company for at least the past two years.

Be a lawful citizen of the U.S. and have a Social Security number.

Plan to occupy the property.

Be able to present that your mortgage payment, taxes, insurance and mortgage insurance will be less than 31 percent of revenues.

Be able to present that the mortgage and all other monthly financial obligation add up to not more than 43 percent of revenues.

Be at least two years out of personal bankruptcy, three years out of property foreclosure, and possess re-established good credit rating. There are exceptions to such guidelines, so speak with an FHA-approved loan provider for additional information.

Have a minimum credit rating of 580 to qualify for a 3.5 percent down payment. Borrowers with scores between 500 and 579 may be considered with 10 percent down.

Remember that these are HUD’s specifications and loan providers’ specifications may be tighter. For example,most lenders demand a credit score of 620 or above, although there are rumors in the lending industry that this might increase.

www.themedinarealestategroup.com

www.themedinarealestategroup.com

How the 203(k) Loan Works

The good thing about the 203(k) loan program would be that the borrower has only one mortgage that contains both the price of the property and the purchase price to rehabilitate it. The loan amount is based on what the property’s projected worth will be after the work is done.

The information of the way the program works are detailed and could be somewhat confusing to housebuyers who lack home construction experience. The process begins with the lending company, and you will need to use one which is FHA-approved. Ask your real estate agent for a recommendation, or you can find a list of these lenders at HUD’s website.

Your loan provider will likely then select an FHA-approved consultant, whose job it is to figure out the scope of work required. Once that determination is made, the appraiser will figure out what the property will be worth after the job is completed. Payments from escrow will occur at a number of guidelines during construction.

You will have six months to complete the rehabilitation.

With property inventory tight in numerous areas all over the country, widening your home search to incorporate fixers may just allow you to rehab your way to the home you’ve always dreamed of. So, it’s perfectly okay; fall for the chances. You are able to afford to buy a fixer.

Irene Medina and The Medina Real Estate Group have vast experience in marketing of properties extensively worldwide via the internet. They sell their listings in record time and for top dollar and sometimes for above market and appraised value. They have received many recommendations from their extremely satisfied clients and customers. Irene Medina has been a Floridian for the past 22 years and has been a Broward County resident for 21 years. Irene and The Medina Group service, Plantation, Fort Lauderdale, Coral Springs, Parkland, Davie, Weston, Tamarac, Broward County and South Palm Beach. She has been a Silver medal winner with Keller Williams for the past 3 years. She is a Certified Residential Specialist, CRS, Certified Distressed Property Expert, CDPE, she is also a Graduate of the Realtor Institute, GRI. She also holds the following designations, SFR, CHS, TRC and is working on her Commercial RE accreditation.

Irene and The Medina Real Estate Group will “Stand by YOU Every Step of the Way!” from start to finish.

For Your FREE Home Value go to: Home Value

If you need to Short Sale your home, please go to www.FlShortSaleServices.com

If you are a buyer looking to buy a home go to  www.TheMedinaRealEstateGroup.com

Client Testimonials

Irene Medina / Realtor
This email address is being protected from spambots. You need JavaScript enabled to view it. / 954-439-4851

The Medina Real Estate Group
www.TheMedinaRealEstateGroup.com

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Irene Medina, PA

Standing by YOU Every Step of the Way!"

My core values are to educate others, have fun every day, respect the environment, and treat customers like family.

My passion for EDUCATION and SUSTAINABLE LIVING are what make me stand out from the rest. I am a mentor and coach to other Realtors, a trusted real estate advisor to my customers, and I hold the National Association of Realtors Green Designation which qualifies me to educate and advise others on sustainable living issues. My relationships with green vendors and my expert knowledge on sustainable living issues enable me to help my customers achieve their green goals.

I have fifteen years of experience working as a Realtor in South Florida. I have guided my customers through rising and falling markets and I have sold all sorts of homes, from large estate homes to beachfront condominiums.

I am the founder and leader of The Medina Real Estate Group, a team of real estate agents who value honesty and transparency and have a passion for education and sustainable living. My team's primary goal is to exceed customer expectations every time by putting customers first, listening to their needs, and keeping them well-informed from contract to closing.

My team works hard, but we also have fun and we want our customers and the Realtors we mentor to have fun as well. We implement superior negotiation skills and leverage technology to guarantee that our customers will buy or sell their home quickly and for the best possible price. We are by our customers' side every step of the way, from contract to closing, and we treat our customers like family to make their transactions easy and stress-free.

Our passion for education and for the environment ensure that our customers are well-informed and receive the expert advice needed to help them achieve their sustainable living goals.

Remember that I am committed to "Standing by YOU Every Step of the Way!”

WWW.TheMedinaGroup.com

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