How it works:
- Find One: You love one of the fixer-uppers I’ve been featuring. It costs $300k. I represent you and we make an offer and go under contract, contingent on inspection and financing.
- Estimate Renovation: I help you bring in the necessary experts (inspectors / contractors) to estimate the renovation. The estimate comes back at $150k.
- Financing: Your loan officer makes sure you qualify for a $450k loan ($300k for house +$150k for renovation). An appraiser checks to be sure with the renovation the property would appraise at $450k. If it does and you qualify, your loan would be for $450k. It would include the purchase price of the house plus the renovation cost. The contingencies are your protection if the house doesn’t appraise at $450k or the renovation costs are higher than the loan amount you can afford.
- Downpayment: For a 203k loan, you only need to put 3.5% down ($15,750). If you have more to put down, you might qualify for a conventional loan.
This is a great option for renters who want to build their dream home! Or if you currently own a home and can carry more debt, this may work well for you too.
Interested? Contact me to learn more!