Financing Your Home Purchase AND Obtain Renovation / Rehab Funds at the Same Time!
Many of the most popular neighborhoods in Vancouver WA have been established for 15, 20 or more years; with great locations, tree-lined streets, nice yards and homes with "good bones." Yet, for many reasons any particular home at the time of sale may be in need of Renovation or Rehab (Rehabilitation) to bring it up to modern standards and good repair.
The asking price for such a property very often reflects the need for renovation, compounded by the reality that there are fewer buyers financially capable and willing to take on a remodeling or repair list. This translates into some of the Best Bargains in Vancouver Real Estate!
For those home shoppers that are willing to take on the modest extra effort involved with a Professional Remodeling / Renovation project, the FHA 203k Home Loan is available to give you the Financial Capability to take on and complete the project!
Here's Vancouver Realtor John Slocum, and Home Loan Officer Paul Thompson with more information:
Background: As a Home or Condo ages, there will always be elements to maintain or replace, from Flooring and Cabinets and Fixtures on the inside; to Roof, Siding and Windows on the outside. When the time comes to sell the property, the owner may not have the financial capability to make the repairs or updates.
Additionally, property owned by the Bank or, where a Short Sale is taking place, the Seller has the property on the market in an "As-Is" condition and will do no repairs whatsoever as a requirement of the sale.
Traditional home loan programs are not designed to do repairs and renovation but rather, their sole purpose is to allow you to purchase a reasonably move-in-ready home or condo. Many years ago the FHA recognized the need for home purchasers who required financing to make the purchase, to also be able to finance the Repairs and Updates at the same time, with One Loan. This allows the home buyer to obtain the necessary funds in one loan; avoiding higher cost secondary financing (and Hassle) such as with a bank Construction Loan or, using your Credit Card(s)!
How Does the FHA 203k Renovation Home Loan Work in Vancouver and Clark County?
Here are some of the Key Financial Elements of the FHA 203k Renovation Home Loan:
- Same Borrower Income requirements as a Standard FHA Home Loan.
- 30 Year Fixed Term Loans at Today's Low Interest Rates -- these are fully amortized loans with no gimmicks.
- 3.5% Down Payment (can be "Gifted"). Even some or all of the Buyer's Closing Costs may be financed if eligible.
- FHA Credit Guidelines, minimum FICO score may vary by lender.
- Eligible properties include: Existing Homes, Modular Homes, FHA eligible Condos, Duplex, Tri-Plex or 4-Plex!
- Eligible Repairs may be included in the loan as well!
- Applicants apply with an approved lender of their choice (we know several good approved lenders).
- A Detailed PLAN must be put together to conform to the program's guidelines (help is available!)
Are There Any Other Important Items to This Loan Program?
Here are a few more items to check off before looking into this loan or at a particular property:
- Must be Owner Occupied as the Primary Residence;
- Home must have had an Occupancy Permit issued;
- A Home Inspector with HUD qualifications is Highly Recommended.
- The work will be performed after Closing but, must occur reasonably soon thereafter.
If you have an interest in this type of loan and home purchase please give me a call (John) at 360.241.7232.