Do you want to buy a fixer-upper in Woodbridge, Virginia?
Do you have the skills and financial horsepower to take a dump and transform it into a diamond?
Investors and home owners alike are buying distressed homes at low prices, renovating them, and selling them or moving into them.
Investors tend to buy distressed houses with cash, fund the renovation with cash, then cash-out at a profit when the renovation is done.
Do you have a few hundred-thousand dollars cash idling in your bank account? No? That's okay. You may still be in the game with an FHA 203K home loan.
With and FHA 203K you would obtain an appraisal of the house, show the bank that there is equity at the purchase price, buy the house with the FHA 203K loan, then take draws of cash to fund the renovation.
For example, we find a house for $300,000 in a neighborhood where renovated homes are selling for $375,000. You and I determine that the house needs $60,000 in renovations.
You would buy the house for $300,000, get a loan for $360,000 with a standard 3.5% FHA down payment of $13,125. So the loan, plus the down payment adds up to $373,125... well within the $375,000 appraised value. You would have $60,000 you could obtain in draws from FHA to fund the work.
You, or your contractors would do the work on the house, drawing cash from your loan as you perform the renovations.
In the end, you have a lovely home, renovated with your special touches.
There are other terms and conditions that go into an FHA 203K loan, so text me or give me a call at 703-677-1120. You may start and email conversation with me at my website.