saving sales: Renovation Financing - a key to saving purchases in tight markets?
- 04/13/14 07:39 AM
With many areas in the Houston(TX) area at LESS than 2 months' inventory - there is a little known secrect for keeping the Buyer interested: suggest that they consider a Renovation 1st purchase mortgage. Why? For example: Buyer LOVES the home - Except: wife says the Kitchen is outdated, or husband wishes it had a swimming pool (do you really want to tell them to do 2nd mortgage later?). Option: do a 1st mortgage that INCLUDES the renovation cost. Up to 95% LTV. Example: LTV: 95% PURCHASE/RENOVATIONS Costs: Sales Price: $ 190,000 Labor/Material: $ 39,500 Soft Costs: $ 2,200 Contingency: $ 4,170 Monthly PITI: 0 TOTAL: $ 235,870 "As Completed" Value: $ 250,000 Maximum Loan Amount: … (1 comments)
With many areas in the Houston(TX) area at LESS than 2 months' inventory - there is a little known secrect for keeping the Buyer interested: suggest that they consider a Renovation 1st purchase mortgage.
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