Need Financing For Your Salt Lake Fixer Upper?
Do you need financing for that Salt Lake Fixer Upper you found in Sugar House or West Jordan?
Like to make an offer on the pre owned home you found on-line in Cottonwood heights but realize that after closing costs and down payment there wont be any cash left to finish that fourth bedroom ?
This is not a new dilemma.
Many home buyers, wanting to buy a house in an older community are faced with the cost of fixing it up to make it more comfortable for the family.
With no cash left to get the jobs done without taking out a hard money loan, upgrades and remodel plans are ignored.
That's why when Doug Walker our friend and one of our most trusted home lending sources sent this e-mail about an FHA home mortgage program he is offering I couldn't wait to tell you about it.This FHA program will make it possible for buyers of Utah homes to include in the original loan the cost of fixing the house up to be better for your family.
Here's Dougs e-mail. See what you think.
Cheap Fixer Upper Financing
In this age of stimulus bills and bail outs you would expect a really cool mortgage loan program to help home buyers. Well, there is one, but it's actually been around for years. There is a little known FHA loan program called the 203(k) that allows you to purchase a home and fix it up with the same loan. It's not very well known because most lenders either can't do them or just don't want to do them. They are more work than the average loan officer wants to do and most companies don't have underwriters that are familiar enough with them to confidently issue an approval that FHA will accept. At Republic Mortgage we feel the benefit to the client is so big that we have made the commitment to offer this program. We have loan officers who have been certified on this program (of course, that includes me) and the staff to get them done.
Here is an overview of the program:
1. It can be used in any area or county up to the FHA loan limits of that county.
A. Salt lake, Summit and Tooele counties -$729,750
B. Wasatch county - $431,250
C. Davis county - $397,500
D. Utah county - $323,750
E. Most other counties - $271,050
2. Determine what work you would like to do to the home. (The appraiser may require some items to be completed to qualify for FHA financing.)
3. Get bids on labor and materials. You may provide the labor on much of the work without a contractor.
4. If the cost of repairs is under $31,000, there are no inspections needed. You get half of the money when you close on the home and half upon completion of the work. If the cost of repairs is over $31,000, there is a construction consultant conducts inspections to authorize the disbursement of funds monthly.
5. You get a credit for energy efficient items like windows, heating and air conditioning units, and insulation.
6. We finance 96.5% of the total cost (purchase price + remodel). Your down payment is just 3.5% of the total cost.
7. You have up to 6 months to complete the work.
8. Your rate is locked upfront on a 30 year fixed rate. The rate is only about .25% higher than the normal FHA rate at that time.
This is the very best way to finance a "fixer-upper". It takes a little more time and effort to put a loan like this together, but it is definitely worth it. The days of easy home improvement loans and zero equity lines of credit are over. If the house you find needs some work to make it your dream home, use the 203(k) program to make it happen. Call me anytime and I will walk you through the details.
Doug Walker
REPUBLIC MORTGAGE
11602 S. Redwood Rd. #B101
South Jordan, UT 84095
801-302-7220 Office
801-244-7620 Mobile
888-878-5403 Fax
If you don't have that fixer upper in mind, and don't have an agent, let me invite you to search our site @ Salt Lake Homes and view over 8,000 houses and Condominiums in and around Salt Lake City right from your computer. You'll see photos, maps of streets, home prices, locations and descriptions of every home listed on the MLS in the Salt Lake Valley.
You can find a home or condo that can use this program.
To find out more information about Real Estate in Salt Lake City, tips on buying or selling homes or articles from experts in the field, stop by SLC Real Estate. We update daily so you can stop by often.
Or give us a call if you want to talk about Real Estate or to discuss whether you need financing for your Salt Lake Fixer Upper.
Published Saturday, September 26, 2009 4:09 AM by Corie Seymour
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