Have you been parading around the Greater Seattle Area touring numerous homes, but none seem to fit your standards? A home only has two bedrooms when you need three? The layout is odd and you are looking for an open-concept living space? Well, Team Troy has an awesome solution to your frustrations!
The FHA 203k home loan is designed for individuals who want to repair, improve, or upgrade a house so they can live in it as their primary residence. FHA financing allows you to include money needed for repairs and related costs in the mortgage, such as contractors fees, labor, materials, etc.
How does this process work?
Let’s walk through an example. Potential buyer Bob wants a 3 bedroom, 2 bathroom home with an updated kitchen and sliding glass doors to a back deck. However, in his $400,000 price range, he can’t seem to find anything that fits his needs.
This is how buyer Bob proceeds:
- Bob calls up one of the Experts at Team Troy to seek advice on his home buying process
- We let him know that it will be extremely difficult to find a home that meets that criteria in his price range, and offer to show him a property that he can transform in to his dream home
- Bob views a home that checks most of the boxes, but the kitchen is a disaster. BUT FHA Financing can fix that.
- Bob makes and wins an offer of $300,000 on the fixer property ($100,000 below his max budget!).
- After working with an FHA consultant, property appraiser, and a Team Troy real estate agent, Bob receives a loan for $350,000
This is the price of the home, coupled with $50,000 of project cash for Bob to completely revamp the kitchen. Bob can now hire a contractor to complete the work and move in to his renovated dream home for below his initial budget!
Every FHA 203k loan and subsequent rehabilitation project is different – Therefore it is best to talk with an expert to see if this financing option is right for you.
Are you looking to buy a home in the Greater Seattle Area and take on a renovation project through FHA 203k financing? Call our Seattle Real Estate Agents today to discover more about this program including who is eligible, what renovations can be performed, the minimum qualifying standards, and more. Ask us how you can go 6 months without paying a penny on your mortgage!