Loan program for ‘fixer uppers’Posted: September 23, 2011
In a town like Nome, Alaska building costs for new construction can run up to $320 per square foot. There are many homes on the market that could be rehabilitated, updated, and made into really nice homes!
Trust me, I took a home built in the 1900’s, put about $30k into it and have a gorgeous ‘new’ home in downtown Nome! We had to replace wiring, plumbing, insulate etc but the look and feel of the home is brand new!
FHA’s Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.
Now you do have to find a contractor to work with you; the loan program can be a little cumbersome with more paperwork than traditional loans (yes, it is possible to have more paperwork, LOL!)
You can even do some of the work yourself, and whatever you save will reduce the prinicpal balance on your loan!
If you could by a 1300 sq ft 3br home for less than $100k, put in $35k in improvements and have a great house to live in? In this town, this is a no-brainer!
See www.203k.nomesweethomes.com for a home that is ideal for this loan program!
Now only 2 lenders in AK are authorized to do the 203k Streamline, so email me for more information!