Finding your Prince with a 203k Renovation Loan
It's no secret that today's market is missing one key component...available houses! So, maybe it's time to get creative. A 203k loan can be the bridge to get you from the ugly duckling on the block to the banner property that will be the envy of all the neighbors! Check out this house right down the street from us. (Photos below) It closed over the winter and sat as permits were being secured, and with that, off came the roof! They added a second (and third) floor, as well as a rear section, nearly quadrupling the square footage in one fell swoop. This house, shooting from the hip, would have an ARV of 1.3M or so, and my guess is they will be into it much, much less than that. So, an added benefit of fixing it your way is the possibility of instant equity. When is the last time you saw that in this market? With a 203k loan, you as the buyer: Gets preapproved at the total value (purchase price, plus escrow for repairs)
Shops with a normal preapproval
Submit your offer, and your plans for renovation!
Your contractors become vetted by the lender, and payments are disbursed to them as work is done!
Oh, and you can build 6 months of mortgage payments into the loan so you won't have to carry your current home plus this.
The project is finished, you move in, and have a custom built home just for you! If you would like to find out more info on how a 203k loan can work for you, and how you can start shopping today for your dream home, let's talk!