FHA 203K Loan - The True Fixer Upper Loan

The FHA 203K loan has been around since the 1970's however the reason why you don't hear about alot of them being done, is either the borrower is aligned with an in-experienced loan officer, who does not want to take on the challenge of additional work and time to close, or you just don't know about it.

Here is how it works, and you can either do a PURCHASE or REFINANCE with this loan.

You can roll in the comprehensive repairs to be completed by a general contractor and subs into your loan amount. Simple as that.

Integrated remodeling of a room, area, or entire home with multiple jobs being coordinated by one contractor. Want to add a bedroom, bathroom, or any additional square footage, a deck, a new kitchen, can all be rolled into the interest rate, which now is between 4.875%-5.625%. Amazing. LOW! RATES!

So here is an example of a purchase I am working on now. The buyer is purchasing a home with foundation issues, and a bunch of other problems for $290,000

The FHA HUD Consultant estimates the repaired to be around $110,000, so the new loan amount, which has to abide by FHA County Limits, is maxed at $406,250.

The cost per square foot in this particular area of Denver is a little over $210. The property is 2800 sq feet. That will justify an after appraised value of $588,000. WOW!

Even if the buyer wanted to sell the property in six months, he will have an amazing profit of over $180,000!

Now obviously, some cases will work better then others, however if you are like me, and have a watchful eye, you can research foreclosures, bank REO's, etc, and really get a great deal on a new home.

IN a society where we have 1% savings, and property values are declining, this is an amazing opportunity, as a buyer, to really capitalize on the environment that we are in.

If you are looking for a remodeling contractor or replaement windows in the Palm Beach area, please call 561-798-5722 or complete our online request form.