What can you do when you've finally got a contract on a home you love and then inspection issues come up that can't be resolved. You don't have the money to fix.... all of the seller's money is tied up in the house....
Do you just walk away when you can't get a roof cert? The windows need replaced? The foundation needs work? The place needs bulldozed and rebuilt? It has lead based paint? Or maybe it just needs a new furnace and garage door?
So the seller might be willing to lower the price.... what good does that do you if you don't have the cash to fix it?
203K Renovation loan to the rescue. You can get a home loan based on the value of the home AFTER it's been fixed up. $5,000 in repairs? You get the extra $5,000 with your loan to have the work done after you move in. $200,000 in repairs on a house that's falling down and currently only worth $60,000? And it's not even an expensive loan.... It's at our regular FHA rates.
SOooooo.... why isn't everyone doing it? Because they're more work, and most banks don't have the processes and systems in place to make sure everything goes smoothly. But guess what? We do. And we can close 203K loans in 30 days and make you and your Realtor a believer for life.
There are a lot of other times 203K loans work perfectly, and I'll write about those later:
-When you find the perfect house, "if only" it had an updated kitchen.... or "if only"it had hardwood floors.
-When you can't get past the FHA appraisal
This is for primary residence only, and you need to live in the home for at least a year.
OHHHHH!!! And guess what, in Colorado you can use the 203K loan WITH CHFA's (Colorado Housing and Finance Authority) downpayment assistance program..... with just $1,000 down. So you can literally buy a house and put in a brand new kitchen with just $1,000 of your own money. I would love to help!
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