Go Ahead, Fall in love with a fixer upper. FHA to the rescue.

By
Real Estate Agent with Mentone Cabins Realty, LLC

Have you fallen for a home that is in dire need of repairs and updating? Is the seller refusing to work with you on repairs? Does the picket fence look like it will fall down if someone sneezes too hard? Is the lead-based paint peeling off in bite-size pieces? Is the landscaping so overgrown you think the house is alive? Is the shag carpet worn down to its last shag? Can you see your reflection in the foil wallpaper? Is the home so dark you need a flashlight at high noon? And, what is that smell? Is the plumbing working?

Roll in The Repairs with a Rehab Plus Loan!

Bring that diamond-in-the-rough into the 21st century with a new kitchen, updated bathrooms, lavish landscaping, safe paint, hip carpet, timeless hardwood floors, chic light fixtures, modern plumbing fixtures, the latest kitchen appliances, energy-efficient windows, elegant granite counter tops, a sturdy fence, even room additions, a new roof, foundation repairs, and a swimming pool and spa for relaxing.

Why use the Rehab Plus loan?

1. Combine the mortgage and home improvement financing into one low-rate loan.

2. Eliminate a higher-rate second mortgage or home improvement loan.

3. Keep your cash liquid or apply it down on the mortgage.

4. Sellers of foreclosures and fixer-uppers prefer to sell as-is.

HOW IT WORKS WITH PRIMELENDING.  ( other lenders might have different requirements)

1. Negotiate lowest purchase price for the buyer and execute contract.

2. Add in the repair estimates from the contractor.

3. Get home appraised to determine After Repaired Value.

4. Go to closing.

5. Contractor gets paid from escrow account held by PrimeLending.

The important thing to remember in this foreclosure world is that FHA has a great product for your buyers to get an even better deal.  If they are willing to have repairs made (takes patience and an ability to see beyond the disrepair) there are great bargains to be had and instant equity - even in this market.

Go to your lender and ask for the FHA rehab loan.

Comments (1)

Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Great, now I can recomend it to my buyers. Thank you.

Sep 07, 2009 03:32 AM