You may have spotted our mini ‘rehab Lab’ booth at the 2014 #WestWardWonderful Hump Day, when free bridge realty teamed up with a local 203k renovation loan specialist. We pulled current West Ward (easton) housing stock ranging from $19,000-299,000. There still some nice candidates our area for this renovation loan; houses that are listed at some super-low prices but that require more maintenance or renovation.
WIN/WIN: If you have a credit score of at least 620 and household income over $45,k or thereabouts – you might be surprised about what you could potentially afford with just 3.5% down + ‘rehab’ the property to make it better – the 203k renovation loans might cover new kitchens/baths, roofs, siding. This renovation loan is mainly available for your primary residence.
Is the 203k loan an involved and complicated process? It can be but if you partner with a lender that really knows the product and the process it can be much less painful.
The FHA 203K Renovation Loan Program gives you the opportunity to both PURCHASE a 1-4 unit residential or mixed-use property and gives you extra money over and above the sales price to FIX IT UP! You can include minor or major repairs like fixing a plumbing leak or broken furnace, replacing a roof or waterproofing a basement as well as remodeling such as updating a kitchen or bath or installing new siding or energy efficient windows.
The loan is based upon the AFTER-IMPROVED value of the home and the minimum downpayment is only 3.5% of the combination of the base sales price and cost of improvements. It’s one loan with two pieces: FIRST piece of the loan you complete the transaction with the seller and take ownership of the property and SECOND piece of the loan is put in an escrow account with us at closing and as certain stages of the work are completed those funds are released to you via check.
What’s the catch you might ask? First of all, you do need to qualify for the loan amount you request just like you do a regular FHA loan. And, we do want you to use a PA licensed home improvement contractor to do the work. Finally, property does have to be your primary residence. (There are other special renovation loan programs for investors too. Depending on credit and income, you might get a loan to buy and fix up properties and either flip them or generate rental income). So if you want to feed your inner HGTV home improvement show addiction with a project of your very own let Ellen know you would like to addend a #RehabLab – send an email if you would like to be on our invitation list/ get an announcement of the date and time(s), or if you want to get started on one before our next seminar.
Follow @freebridgereal on twitter, #fixers #RehabLab – you can request to be on an auto-feed for some top-picks.