That's right I said it and I will say it again. Go flip yourself. ---And you'll thank me if you do.
What am I talking about? Well, I am not trying to be profane.
I'm saying "flip" a house...to yourself! How? Let's look at how a "flip" works.
Speculators "flip" a house using the following recipe:
A) Start by finding a house at a competitive price (because it is in need of repair)
B) Purchase the house and add needed improvements (like a new kitchen, new bathrooms, new windows, and a new roof)
C) Presto Change-o you created a new, completely renovated house that is worth more than your purchase price + the cost of improvements.
In other words. you just created equity (money/value)!
Before - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -After
Well maybe not that extreme of a change, but you can make a significant change nonetheless.
The speculator would then attempt to sell the house and pocket the spread.
However, this process requires the speculator to:
1) Have a down payment of at least 30% of the purchase price to purchase the property (because purchasing a property for investment requires a large down payment, regardless of your credit and income),
2) Have cash to pay for closing costs, less any seller concessions
3) Have cash to pay for the improvements,
4) Have cash to pay the mortgage payments during the renovation and until the sale, and
5) Have the good fortune/patience/money to hold the property until you get the price you need to earn your profit.
Speculators are at a significant disadvantage compared to YOU,
if you purchase a home and "flip it" to yourself.
Why? Because speculators do not have access to the best loan product out today
AN FHA 203K LOAN
For you to "Flip Yourself" using an FHA 203K loan you have to:
1) Have a down payment of only 3.5% of the purchase price plus the improvements you choose (because purchasing a property for yourself to occupy requires a relatively small down payment), and
2) Have cash to pay for closing costs, less any seller concessions.
What about #s 3, 4 and 5? Well a 203K loan allows you to
3) Finance the improvements in the same loan, at the same low rate as your purchase money mortgage, (leaving your savings intact),
4) Finance the mortgage payments during the renovation, again in the same loan, and
5) Enjoy living in the terrific "new" house you customized for yourself while delighting in the knowledge that you just created equity in your home!
Note: If you have already closed on your home you can refinance with a 203K loan and get the same benefits!
Making Life Better, One Loan at a Time