Construction, Re Model Loans- Buying in the Right Location with FHA 203k Home Loan’s

Construction, Re Model Loans- Buying in the Right Location with FHA 203k Home Loan’s

If you have determination and savy to buy house that needs some work, you can get a few fantastic perks along the way that makes home ownership great!  Not only are you fixing your house, but you are raising the equity and improving the value of homes in the area by bringing one home up to standards. Here are the most notable advantages to buying a fixer upper home:

Reduced price- Some homes go on the market for a lower price because the seller or bank doesn’t want to do the extra work. Instead of taking their own time putting money into it, they would rather just list it for less and let the next person take on the work. Because the property is in such poor condition, you can sometimes offer well below the current market value. These are especially good deals if you buy a beat up home in a very good neighborhood where homes tend to sell for more.

Choose your own look- Buying a home that’s already fixed up is nice, but it will never look exactly the way you want it to unless you design it yourself, install your type of cabinets, sinks, bath tubs, flooring, etc. You can take out non bearing walls and not worry about destroying the paint job because you will want to paint them a shade that you prefer anyway.

Create your own equity-  You can buy the house for less than market value, which is ‘s what it’s worth because it needs so much work. The real advantage comes with every improvement you make, big and small. As you make the house look better, equity will begin to rise up to market value and depending on how much you fix it up, it can be in the upper range of home prices in that area.

Qualify for a construction/re model loan- There are some types of financing that you can get to make improvements on a home, such as an FHA 203K loan. There are more loans that you can get when funds become available from the government, or other programs. Usually, they are offered to improve neighborhoods and increase property value. For many of these types of loans, you must reside in the property to qualify. Talk with an experienced lender to find out what loans you can get.

Investing 101- Question: Buying the best house in the worst neighborhood or buying a house that needs some updating in the best neighborhood makes the most money? Taking a house in poor condition in the BEST neighborhood and turning it into something impressive is creating the most wealth. You can have a home with the look and feel of your choice by buying it and using the remodel loan!

Work with the right team

I love to work with readers. As a Mortgage Planner at Vintage Mortgage Group in Pleasanton I am in a unique position to help you capitalize on construction financing for your  next purchase or remodel. Contact me below today to help you today.

 

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