With perhaps a still growing number of distressed properties for sale nationwide, the need for renovation financing stands out as one of the most needed products for today's changing Real Estate marketplace. There are many foreclosed properties available everywhere.
Traditional loan programs not only require that utilities are on and working at the time of an appraisal inspection, but the appraisal is required to note deficiencies at the time of inspection such as leaky roofs, peeling paint, holes in drywall, and even major defects in flooring. Loans may be turned down if the property is deemed not to be inhabitable, and many lenders don't have ready solutions for these common problems. In many cases the buyer or seller may be required to escrow 1.5 times the amount of the highest bid to cure the defect and we see transactions which can fall apart because neither the buyer or seller is willing or able to put up such funds. Consider the cost of a $15,000 septic upgrade, for instance. Who's willing and able to put up the $22,500 that may be required to close the loan?
Enter renovation financing: one simple loan, money for the purchase and renovation all rolled into one transacttion. No copper plumbing - kitchen missing - leaky roof - NO PROBLEM.
The FHA 203k even allows owner-occupants to do the work they're able to themselves. Once considered a "nighmare" to navigate through to many, the FHA 203k Streamline renovation loan is a very simple and fast solution to problem Real Estate for sale.
Other conventional renovation loans are available as well for investors and for homeowners. You can find additional information at www.jennykrause.com.
Subscribe to CommentsComment