Life...Fun and Kentucky Real Estate

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SOMEONE Will Buy It - It May As Well Be You - Cracked Slab and ALL

With so many homes on the market, the ones that get sold last are sometimes the ones need structural repair.

I can recall one nice house that I showed many, many times and all the clients were turned off after they saw all the cracks in the basement slab. This would have been a great house to buy other than that flaw.

The FHA 203k loan provides the extra financing to roll in the cost of the repairs (even cracked foundations)into the loan.

All work has to be done by qualified and licensed professionals and to be completed within 60 days of closing.

Many of these homes are expertly repaired and great bargains for clients. Find out more about this financing in the article below...

"How do people have the money to buy homes that need foundation repair and tons of work?

Answer:  They don't need to have the cash to do it.  Here's the story.

We have all seen those homes.  You walk in and it is in dis-repair needing paint, flooring - Maybe it's outdated and needs some new appliances.  Sometimes it is difficult to look past all of that and picture a beautiful home.  One that your family can live in and enjoy.

Others see a home with 'potential'.  The home is a good consideration, especially at that price!  Let's look a little further.  And then, Uh Oh.

What are all of these cracks?  There may be some around the windows, where the sheetrock comes together in the corners.  The floor, it feels like we are walking downhill!  We then go outside to see significant cracks in the exterior of the home.

Immediately people think foundation problems.  With everything else, why would I want to tackle that?  It can be very costly, maybe we should just keep looking.

Well, maybe it is foundation problems - Maybe it isn't.  Maybe it is just an older home that has settled naturally.  It is not uncommon here in the Southern Region of the United States.  Especially if the home has sat vacant for a long period of time.  Often times people will walk away.  They feel that they do not want to do inspections and find out if there really is a problem they just keep moving and find another house. 

But you know what?  SOMEONE will buy that house.  6 months later you may see it back on the market by an investor that does a complete makeover on the home and you know what else?  You would never believe it unless you had seen it with your own eyes 6 months earlier.  You hear whispers of 'Can you believe it? Do you remember how much that home SOLD for?  I can't believe it!'

It must have been an investor with a lot of money.  Or, let's just leave that one to an investor with a lot of money.  That's what was heard before, when it needed work.

Home Buyers are looking for 'deals', but here in Houston, the homes that are 'perfect' still sell quickly.  They also sell for a higher price. However, the one I mentioned above that sits on the market for a while?  It may go for a REALLY great value to the Home Buyer.

Using an FHA 203K loan a regular Home Buyer, one that intends on LIVING in the home and ENJOYING the home can still purchase at just 3.5% down.  You know what else?  They can have ALL of the questionable repairs done.  EVEN THE FOUNDATION REPAIR!

FHA 203K is the ONLY loan that I am aware of that allows for Foundation Repair to be rolled in to the loan.  Along with paint, moving walls, landscaping, new countertops...just about anything!

ATTENTION Buyers looking for a good deal:  Consider these Mortgage Products!  Renovation and FHA 203K Loans. 

  • As little as 3.5% down
  • Roll in the cost of repairs
  • Work must be done by qualified and licensed professionals
  • Usually within 60 days of closing
  • Competitive Interest Rates

Someone will buy that really neat home that needs a lot of repair and probably at a great price.  It may as well be you! 

If you need the name and number to a Qualified Mortgage Professional that can do these loans and has experience with them, just send me an email.  I would be happy to send you their name and number.  If it is the home for YOU, just make it happen!

Comment balloon 6 commentsLizette Fitzpatrick • March 09 2009 08:44AM

Comments

Thank you for sharing this.  Buyers need to know there are solutions to their dilemmas.

Posted by Jim Crawford, Jim Crawford Atlanta Best Listing Agents & REALTOR (RE/MAX Paramount Properties) over 9 years ago

Thanks for sharing this. Some cracking is not a huge worry but if it's in an area that has clay or irreparable drainage then it seems like an ongoing problem. This is good to know and thanks for re-posting Stephanie's information. She is a wealth of great real estate knowledge!

Posted by Russell Lewis, Broker,CLHMS,GRI (Realty Austin, Austin Texas Real Estate) over 9 years ago

I have heard a great deal about the 203k rehab loan and it seems like a fantastic tool. If you are looking at a home with "deficienies" and you really like it but can't afford the "reapairs", you may want to look into this program.

Posted by David Width Jr. over 9 years ago

Sometimes it is worth buying a house with problems, when it all pencils out.

Posted by Steven L. Smith, Bellingham WA Home Inspector (King of the House Home Inspection, Inc.) over 9 years ago

Lizette--I have been hearing so much about the 203K lately. It sounds perfect for foreclosures as you need to have appliances to qualify for FHA and so many foreclosures have missing appliances. Good information!

Posted by Teri Eckholm, REALTOR Serving Mpls/St Paul North & East Metro (Boardman Realty) over 9 years ago

Lizette, great information. I know that FHA requires certain repairs, but I've not heard of this one yet. Good to know. ;-) Thanks for sharing Steph's post. ;-)

Pepper

Posted by Mesa, Arizona Real Estate Mesa Arizona Realtor, AzLadyInRed (Homes Arizona Real Estate LLC) over 9 years ago

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