Home Buying in Waterville>Question Details

Aliza Welch, Home Buyer in Waterville, ME

Thank you for the previous answers about the tax incentive. I have actually been looking for 3 months to purchase a home and trying to make a

Asked by Aliza Welch, Waterville, ME Mon Apr 5, 2010

decision right now. With that said I do have another question. As a first time home buyer could I purchase a home and get a separate loan to fix a home up. We have a few that we are looking at and one of them is very close to forclosure. Because of that it is quite cheap and we have heard he is willing to take a low offer so it doesn't go into forclosure. I am a first time home buyer and approved at 120,000. The home they are thinking we could get for 70-80 grand. What do banks offer? My relator said I had to go through a different bank and get a 304(?) something like that? Can anyone give me any information or does it depend on the bank? I am thinking I'd like to get 30 grand to fix it up if I went down that road. Still not sure...

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Like Charlene mentioned, a 203K is the loan you want. If you only want $30K, you might be able to go with a 203K Streamline Loan. It lets you fix up a place cosmetically, but not add a wing to a home. It seems the big banks are the only ones that offer them. I have called around to the local banks, even some larger ones in Maine, and they have never head of a 203K. It's a little bit of work, but totally worth it in the end.
0 votes Thank Flag Link Wed Feb 1, 2012
Aliza,

Be very careful, as this home is most likely a short sale and while you could get the highly motivated seller to agree to a purchase price, you also must get his lender to agree by May 30 (you must close by June 30). If the seller's agent is not experienced in short sales and/or is not using a good third party company you could be left in the cold after the June 30th deadline. While the seller may be highly motivated, his lender may not be, particularly if the home has already been under contract at close to the current list price. Your agent needs to thoroughly research this property before you go any further.
0 votes Thank Flag Link Mon Apr 5, 2010
Your realtor is talking about a 203k loan. You can get money for repairs after you purchase the house, unlike most conventional mortgages which want the houses in good repair. Not all banks offer those loans so you have to call around.

here is a link to the loan description
http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

hope this helps!
0 votes Thank Flag Link Mon Apr 5, 2010
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