The Canton OHio area has been hit pretty hard by foreclosures, but there is opportunity as well. If you are looking for a home that need some work, the FHA 203(K) loan might very well be the ticket.
The FHA 203(K) loan rolls the cost of the repairs into the mortgage, but you cannot go hog wild. The repairs and the mortgage loan must be within what you qualify for.
Lenn Harley in Maryland does an exceptional job of explaining the FHA 203(K) loan.
FORECLOSURES IN MARYLAND? WHAT ABOUT THE CONDITION? MEET THE FHA 203(k) Rehab Loan.
You've seen those foreclosures for sale in Maryland. The question is, CAN YOU SEE THE POTENTIAL?? If you can imagine how you could make repairs and upgrade that home, you are a good candidate for the FHA 203(k) purchase financing.
YOU CAN ROLL THE COST OF REPAIRS into your mortgage loan.
Banks sell their foreclosed properties "AS IS" and will seldom make any repairs. This is why the bank owned properties are often purchased"cash only" by investors with cash to buy the homes outright and then do the "fixing up" after settlement. Investors have benefited greatly by getting good prices on bank owned homes.
YOU CAN BENEFIT BY BUYING A "FIXER-UPPER" TOO with an FHA 203(k) financed rehab purchase.
SOME IMPORTANT POINTS ABOUT THE FHA 203(k) LOAN:
- You can combine the mortgage and home improvement into one fixed-rate loan.
- No need for a second mortgage.
- Sellers are often more willing to negotiate purchase price whan they can sell "as is".
THE STEPS TO BUYING A HOME WITH 203(k) financing are simple:
- Negotiate the lowest price for the property.
- Add the repair cost estimate.
- Get appraisal for "After - Repaired Value"
- Close on your purchase/loan
- Make repairs and the contractor gets paid from the repair escrow held by the lender.
REPAIRS THAT ARE OFTEN INCLUDED IN AN FHA 203(k) REPAIR LOAN.
New Kitchen, Updated Bathrooms, Landscaping, Paint, Carpet or Hardwood Flooring, Lighting, Plumbing, Appliances, Energy Efficient Upgrades to appliances, Windows, Fencing, Roofs, and more, even Room Additions and Garage Additions.
WE CAN HELP?
Homefinders.com will help you find a wonderful home with potential for good value after repairs. We will then coordinate the purchase contract, mortgage financing and repairs.
For more information, contact Lenn Harley, Broker, Homefinders.com, 800-711-7988.
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