One of the most uninitialized home loan out there is the 203K Renovation Loan. With the market being has hot has it is, everyone going after the same property and putting in multiple offers, only to increase the original list price.
Why not go after the ugly duckling, the one that people are passing up on or the one that the only buyer that is looking is the Investor who want’s to buy the home next to nothing only to give them enough room for the repairs and a major profit when they go to resale the home.
The very same home that I speak up may be the one than needs just some updating. Updating would be, but not limited to, a brand new Kitchen, completely update and modernize the bathrooms, new flooring through out and paint.
And you don’t have to stop there! Add a new roof, rain gutters and window to make the home really feel and look like new.
Now to top it all off. Put in those new stainless still appliances, new hot water heater and central A/C.
This is what the number may look like on such a adventure.
Original purchase cost: $237,000
Complete renovation cost: $27,000
Finial after repair cost: $264,000
Similar homes in the neighborhood going for $275,000 to $290,000.
You didn’t have to compete with everyone else and you practically have a new house with equity already built into it. You can enjoy this for several years to come. This all can be done with one mortgage, one closing and one finial payment.
How about this scenario….You find a home that over all is in really good conditions but all it may need is some painting through out, new flooring and maybe some minor repairs on the plumbing and electrical. The cost may be around $12,000. No problem, this can be done with a 203K.
203k Renovation loan….Why not make this a mortgage of choice?
Premier Real Estate Agent & Mortgage Originator