Don't Buy No Ugly House Until.....

By
Real Estate Agent with Brown Realty, 210-789-4216,www.JeremiahNewman.com TREC #0492321
https://activerain.com/droplet/cJZ

Don’t Buy No Ugly House Until........

That’s right. Don’t buy that ugly house or that “Diamond in the Rough” until you check with your San Antonio Real Estate Professional who specializes in buying foreclosed homes in the local San Antonio and surrounding areas. Buying that ‘Ugly House”,which many foreclosures may look like when you first see them, can be a worthwhile investment when you have done your home work, and have the means of making all those repairs.Ugly House

If you don’t have the necessary funds to make those cosmetics repairs and a few other minor repairs, let me introduce you to the FHA 203 Streamline loan. FHA will allow borrowers to purchase or refinance their home, and include the costs to rehabilitate and repair that “ugly house” all in the same loan. The maximum amount allowed for repairs in the FHA 203(s) is $35,000, but in the state of Texas it is actually around $31,500, according to what my preferred Lender has informed me.

So what kind of improvements are eligible for this FHA 203(s) loan?
Virtually any kind of improvement is eligible provided that it becomes a permanent part of the real property and adds value. Additions or improvements to the structure are not allowed for the streamline.  Buyers would need a complete FHA 203(K) for structural repairs like foundations. Below are a few examples of repairs allowed by streamline loan:

* Kitchen or bath remodels.
* Finished basements or attics
* Patios, decks or terraces
* Roofing and landscaping
* Safety, energy efficiency, and electrical upgrades
* Handicapped accessibility improvements
* Any cosmetics like painting, or replacing flooring
Luxury Items are not eligible
* Swimming pools- but up to $1,500 is allowed for pool repairs only.
* Hot Tubs
* Tennis courts
* Gazebos
* Barbecue pits
* Saunas
*Alterations to support commercial use

A Few Highlights for Buyers to Consider

*Work must be completed by a licensed contractor(Preferably a General Contractor)
* Rehabilitation construction work must begin within 30 days of closing on the home
* All work must be completed within agreed upon time frame, usually no more than six months after closing.
* If borrower is related to the contractor then two proposals will be required, one from a disinterested contractor.
* Borrowers must occupy the home within 30 days of closing
* Only Two draws allowed by the lender.

Why not contact your San Antonio Real Estate Professional today to assist you with finding one of these foreclosed homes in our local area. Then let one of my preferred lenders assist you in getting approved for that Streamline FHA 203 loan to help you fix up and repair that “Diamond in the Rough Home” that you just found a great deal on.

If you are searching for any homes in the San Antonio, TX and surrounding areas, you may wish to visit my website at San Antonio Real Estate, then contact your San Antonio Real Estate Professional for a viewing and consultation on any of these homes, and especially if your are looking to purchase a foreclosed home.

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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Anita. Yes. this FHA 203 Streamline loan is a great choice for those who want to make some repairs, and don't have that extra money to get it done. Having this option available is great for buyers looking to buy a foreclosed home.

Jun 21, 2011 02:51 PM #20
Rainmaker
717,278
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Jerry-Nice explanation. Not every Lender is up to speed on this product. Glad you have one you can depend on.

Jun 21, 2011 03:15 PM #21
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Thanks, Wayne. I have only known about three lenders who would do these types of loans, and I have always kept up with them about this product.

Jun 21, 2011 03:39 PM #22
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Jerry These programs really giving a buyer the opportunity to turn that ugly house in to a lovely home.  Your title was catchy

Jun 21, 2011 04:44 PM #23
Rainmaker
508,735
C. Lloyd McKenzie
Albuquerque, NM
Living Albuquerque

Jerry,

Great post! Definitely a must see for buyers agent. Great play with words, deserving of a feature  

Jun 21, 2011 05:52 PM #24
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Thanks, Jennifer. I knew there had been previous posts about the FHA 203 K, so I needed a "Catchy title". Hoping to get more information about this program out to the public.

Jun 22, 2011 05:07 AM #25
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Thanks, C. Lloyd. Shouting this news out to all the buyers, who need some extra options of making those cosmetic repairs.

Jun 22, 2011 05:08 AM #26
Rainer
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Fred Strickroot
Fred Strickroot - HomeNet - Tampa Bay Area - 727-478-8997 - Trinity, FL
Tampa Bay Area Homes For Sale

Jerry, thanks for the article. I have never been involved in a 203K sale, but I think I have a house on the market that would be a perfect candidate for it...and perhaps I can get it sold. I like your website, you have all the right information on it for prospective customers.

Jun 25, 2011 06:12 AM #27
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Thanks, Fred. I am glad my article on 203 Streamline loans was very helpful to you. I try to make my website as user friendly as possible. I hope you are able to use this loan program with your present clients.

Jun 25, 2011 12:11 PM #28
Rainmaker
809,418
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Jerry:

Those 203K loans are so great.  Buyers here can buy a home, which has deferred maintenance, at a low price and have $35,000 worth of renovation work done to the house before they move in.  How can buyers lose.

Nov 03, 2011 12:14 PM #29
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Hey, Jerry!  I included this post in Last Week's Favorites.   Have a great Sunday!

Nov 06, 2011 03:05 AM #30
Rainmaker
601,322
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Jerry - While I won't call myself a 203k specialist, I have done enough of these to know that they are a wonderful product for that run-down, dilapidated, dumpy REO property.  I wish that a lot more listing agents around here (Los Angeles & Ventura counties) would educate their bank sellers on this product. 

As many properties that we have here that are ineligible for traditional financing, the 203k should be a lot more popular here than it is.  Less than 3% of our sales are 203k sales.  That's pretty sad for a county that has thousands and thousands of extremely distressed REO sales.

Nov 06, 2011 07:16 AM #31
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Evelyn, The problem is that many buyers don't know about these 203 renovation programs until agents inform them. Not every lender will do them too. That's why I have my list of preferred lenders who will work with 203 K loans. I think it's a great product to help fix-up those REOs and foreclosures that need sprucing up.

Nov 06, 2011 10:29 AM #32
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Thanks, Pat. It's always an honor to be selected by your weekly favorites. Have a Wonderful Evening!

Nov 06, 2011 10:31 AM #33
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Donne. Real Estate agents have to promote this product to their buyers. I know I use it a lot, and I keep my buyers informed. Buyers can find a good deal with a foreclosure, but many of them need fixing up. Excellent opportunity to change flooring, add some paint or to remodel a kitchen or a bath.

Nov 06, 2011 10:33 AM #34
Rainer
178,712
Rosalie Evans
Meritus Group Real Estate - Sioux Falls, SD
The Evans Group, Sioux Falls, SD Homes For Sale

Jerry this is certainly nice to know! I am going to bookmark this since I have a couple looking to buy a ugly home as we speak! 

Nov 06, 2011 05:18 PM #35
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Jerry I like the way you outlined the repairs permitted under 203K.  Of course; a real estate agent can be really helpful.

Love the title of your post.

Nov 06, 2011 10:28 PM #36
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Terrie Leighton
Ferrari-Lund Real Estate - Reno, NV
Reno Real Estate Agent ~ Selling Homes in Reno

Great job and useful information here Jerry for buyers who want to purchase homes that "need a little work." There are some really great loan programs in place right now that help buyers fix up those foreclosures.

Oct 20, 2012 03:28 AM #37
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Sorry, Rosalie and Jennifer. Somehow, I never made it back over to this post until today.

Oct 20, 2012 09:17 AM #38
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Terrie. Buyers do have a few options when it comes to making those needed repairs on these foreclosed properties.

Oct 20, 2012 09:19 AM #39
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