There are aÂ lot of houses on the market right now!Â Some at historically low prices.Â But the best priced houses need so much work.Â Who's got the money to do all that?Â HUD does!!!
Say you find a house that has good bones, is listed at great price, but needs a lot of renovations.Â An FHA 203k loan will allow you to rehab the property up to $35,000 (streamline), more for regular 203k loans, and at a great interest rate.
Why is this good?
Well, first of all, you will get the house you WANT with the finish you want.Â Why buy someone elses taste!Â Â Secondly, you are buying a foreclosed home at far below market value.Â Once you remodel the home, you will still most likely be below market value and have a brand new house to boot. Lastly, this loan also allows you to upgrade, roofs, furnaces, air conditioning, windows, doors, etc, plus kitchens and baths, flooring, etc.Â Most avg size houses can be almost completely redone for $35,000!
Example:Â You purchase a home in Parma, OH for $50,000.Â The house needs a new roof, windows, furnace, kitchen, flooring and paint.Â It can all be done for under $35,000.Â This new home is now worth over $100,000, and you have only $85,000 into it.
Now, this program is not open to flippers.Â It is open to owner occupants and investors.Â Investors would need a higher downpayment though.Â Owner occupants would need only 3.5% down and a 600 minimum credit score.Â
Hope this helps.Â Â Message me if you have any questions...
Constantine GlarosÂ is a licensed realtor with Re/Max Trinity and owner of Alpha Omega Construction.Â He specializes in helping his clients find and rehab properties all over the Greater Cleveland area using 203k loans.Â You can reach him at email@example.com
Â Here are some of his completed projects in 2010:Â http://sites.google.com/site/alphaomegaconstructiondesign/showcase