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Constantine Glaros' Blog

By Constantine Glaros | Agent in 44141

Why 203k in today's market?

There are a lot of houses on the market right now!  Some at historically low prices.  But the best priced houses need so much work.  Who's got the money to do all that?  HUD does!!!

Say you find a house that has good bones, is listed at great price, but needs a lot of renovations.  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.  Why buy someone elses taste!  Secondly, you are buying a foreclosed home at far below market value.  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.  Most avg size houses can be almost completely redone for $35,000!

Example:  You purchase a home in Parma, OH for $50,000.  The house needs a new roof, windows, furnace, kitchen, flooring and paint.  It can all be done for under $35,000.  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.  It is open to owner occupants and investors.  Investors would need a higher downpayment though.  Owner occupants would need only 3.5% down and a 600 minimum credit score. 


Hope this helps.  Message me if you have any questions...



Constantine Glaros is a licensed realtor with Re/Max Trinity and owner of Alpha Omega Construction.  He specializes in helping his clients find and rehab properties all over the Greater Cleveland area using 203k loans.  You can reach him at cglaros@gmail.com  Here are some of his completed projects in 2010:  http://sites.google.com/site/alphaomegaconstructiondesign/showcase

Comments

By Edward Mendelson,  Tue Jan 4 2011, 15:37
Nice blog post. Good info.
Don't forget that another benefit of the 203(K) loan is that FHA will insure a loan for more than the house was appraised for. In some cases they will insure a loan up to 110% of the appraised value.

Ed Mendelson
203(K) Consultant
#A0890
By David & Samuel Rifkin,  Fri Feb 8 2013, 13:08
Thank you very much for this great information.

-David

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