Writing a sales contract for a renovation loan in Texas is a very simple process. In today's housing market finding a home that is move-in ready or newly constructed is not an easy task. This is where knowing about renovation loans comes in handy.
As a buyer in this marketplace, it's nice to know that there are options to purchase and renovate. Also in Texas with our heat and foundation issues there are options for foundation repair using either the FHA 203k rehab loan or the Fannie Mae HomeStyle renovation loan.
So to write the contract it is really just this simple:
1) Decide on price you are going to offer the seller - keep in mind you will renovate the home so you will want to offer your lowest and best offer.
2) Indicate on the third part financing addendum or the special provision section that this is a renovation loan. In the case of FHA you would want to indicate that the section of the act is 203k.
3) Execute the contract for the purchase price of the home with the seller. From this point the process proceeds as usual. The only additional step is that prior to the appraisal we will need a final bid from a general contractor for the work to be done to the home.
The work begins after closing so with the exception of the seller allowing a general contractor onto their property there really aren't a lot of extra steps.
Let's talk for a moment about a seller with a home that needs a required repair such as a roof leak. Well instead of fixing it themselves they can market the home "as is" and make it eligible for a renovation loan. This again is a great use of the loan for both buyer and seller: the seller can get away without doing any repairs and the buyer can customize the home to their liking.
With one of our great renovation loans the possibilities are endless. From the Conventional Fannie Mae HomeStyle to the FHA 203k renovation loan we have them all. Also don't forget that renovation loan are not just for foreclosed properties. Repairs don't scare me and they shouldn't scare you either. Call today for more details