FHA for Fixer Upper? 203k?

Asked by Brandon, Allamuchy, NJ Thu Aug 22, 2013

I am a potential first time home buyer and really just getting familiar with the whole process of buying a home. I am reading some books on it and lots of websites like this one but I have some questions that I haven't found elsewhere exactly.

A bit of back ground: I am currently working the same job for 6 years making about $40,000 a year and have been slowly saving up for buying a house(I have $4,000 saved now), I will be selling one of my cars for another $6,000. I would like to take advantage of the FHA program namely for the low down payment of 3.5%, though my credit is very good and could probably qualify for a conventional loan. I am interested in getting a nice piece of property than the house as I am capable of making repairs and improvements myself. Would like to borrow less than $100,000.

I have found a nice example of a listing that has a big house that sits on 4.5 acres for $89,000. But it needs works obviously, namely furnace, kitchen appliances and septic system.

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3
Susan, Home Seller, Franklin, NJ
Fri Aug 30, 2013
Try Franklin, Sussex County. Affordable neighborhoods, centrally located in the county. Because most homes are on public water/sewer you may be able to qualify for USDA financing.
0 votes
Lilla Langfo…, Agent, Clifton, NJ
Sat Aug 24, 2013
Sit down with a mortgage agent and someone from your local bank to discuss your actual buying power and the financial consequences and potentials of various programs. I can recommend a couple of good agents.
0 votes
Hi Lilla,

Yes I am planning to speak to some lenders but wanted to get as much info as possible before meeting with them. I was almost pre approved a year ago but I didn't have the cash savings I have now. I would appreciate any leads on 203K specialty agents, thanks very much!
Flag Mon Aug 26, 2013
Brandon, Home Buyer, Allamuchy, NJ
Thu Aug 22, 2013
Those are all repairs that could be done by me and my family and we could probably get the house for less than $80,000.

My concern is that the house might not pass for FHA liveable standards the way it sits now.

Is this a good option for a 203K program?
Is 203K still FHA with 3.5% down?
And what if the repair costs bundles into the 203K result in the loan being higher than what I originally wanted?

I am really just seeking some guidance on these topics, I really don't know much about this stuff.

Thanks very much in advance!
0 votes
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