If you are qualified for a mortgage, they took into consideration the realestate tax and the homeowners' insurance. 2 homes at $125K each would cost more in PITI then the $250K home. Also we are stricter in underwrtting on investment properties as opposed to 2nd homes.... more
I'd have to tell you that the best area is going to be Dekalb county if you want to rent. If you want to buy and sell, then go towards gwinnett or cobb county. You can get loans with no money down (with a high interest rate) or more money down (with a lower interest rate). It just depends what you intend to do with the house. If you intend to sell the house quickly, put little money down. If you intend to keep it for a while, find houses at hudpemco.com or homepath.com. Those two sites have foreclosures properties. The first one requires about 80% down, the second site about 10% down, depending on the condition of the property. In this economy, I'd say it would be good to buy rental properties. Financing is getting more difficult which means more renters which means more rental income. You may also want to check out Dekalb county's section 8 housing seminar for free and learn about renting to section 8 people.
Options for a loan: Conventional loan - 20% minimum down payment
Fannie Mae HomePath - 10% down
Fannie Mae HomePath with repairs - 15% down
FHA - cannot be used for investment
Hard Money - 10 to 30% down (no credit, income or asset check). The hard money loan will also allow you to use an LLC to buy the property so that your personal credit is not affected.... more
A new appraisal may be required depending on when (or how long ago) the original appraisal of the property was done, and the purpose (intended use) of that appraisal at that time.
203K appraisal requirements state in part:
If the appraiser identifies repair conditions that were not noted in the work write-up, the appraiser should notify the lender.
An appraiser may not perform a dual role on the same 203(k) property. To prevent apparent conflict of interest an appraiser may not be a 203(k) consultant, or have a direct or indirect involvement on any property they appraise.
The appraisal will contain a statement on the report by the final value that the appraisal being performed is a 203(k) as improved per plans & specifications. A copy of the plans, specifications, work write-up and other conditions upon which the value was based must be part of the appraisal package.
In mixed use properties, commercial space is to be appraised as if it were residential. The lot value assigned should be for the residential use, not the commercial use.... more