Yesterday I held the 'How to Finance That Fixer Upper Seminar' at one of my listings. It was an Open House of sorts solely using my listing as an example on how to use an FHA 203K Renovation Loan to update a home after you close on the Property.
We had a handful of interested people show up and it was really interesting how once they understood how the program works they had a TON more vision on how the home could look after renovation.
When you initially walk in to a home, many people are taken back by paint, flooring, lack of updates, etc. - Human Nature is to say No way. However, each person that walked out yesterday after hearing about FHA 203K had their own idea on what exactly they would do with the home.
Now, I have been talking to Christine Wilson and Kelly Duff of Prime Lending for a couple months now about the program and I STILL learned a bunch of things about the program yesterday. As a quick background - The FHA 203K Renovation loan is a typical 30 Year mortgage that allows you to roll in any repairs, other than Luxury Items such as pools, in to your loan. The Interest Rate will be a little higher but NOTHING like a Home Improvement loan. For example, today the interest rate would likely still be less than 6.5%
I thought I would share all of these with you:
- The Program is FHA which I knew. But this program allows for 3% down as opposed to 3.5% down.
- When combined with an Energy Efficient Mortgage (EEM) for Energy Efficiency Improvements, the cost of renovation and EXCEED appraised value by up to $8000 depending on the HERS Rating Score.
- The cost of the HERS Rating can be included in the Renovation funds
- Foundation Repair and Landscaping is an expense allowed by the program
- It is just a ONE TIME CLOSE - The appraisal is based on AFTER RENOVATION value. The appraiser will have the bids to repair in hand when doing the appraisal
- The check to the Contractor can be made to the Buyer AND the Contractor so that the Buyer has to sign off approving the work performed
- There is a Refinance Equivalent of this loan that is not considered to be a typical 'Cash Out' loan - You can go up to 97% of the home's value as opposed to 80%
- Some parts of the program may only be available in the State of Texas
Overall, I am SO glad that we hosted this 'seminar' yesterday. We would liked to have had more people show up, but after spending 2 hours with these wonderful ladies that drove in all the way from Dallas to attend I am absolutely convinced that the FHA 203K Renovation Loan is an excellent option for many homebuyers in today's market.
If you missed the Seminar yesterday and are wanting to know more information, you can reach Christine and Kelly at 469-338-7126 or you can reach me on my mobile at 281-635-9444 -
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