Greetings from B & A Realtors
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Greetings!
Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration's FHA 203 (k) rehabilitation program.
- The FHA's 203(k) rehabilitation program provides loans for covering renovation costs as well as the purchase price of the primary residence. Investors are not eligible for this program. Additionally, similar to traditional FHA loan programs, the rehab program allows for a down payment of as little as 3.5 percent.
- A common misperception about the program is that the house needs to be unlivable. Realistically, the property just needs to be outdated, according to a lender familiar with the program. The property "just has to appraise below market value and then at market value with the repairs."
- Improvements deemed "luxury" are ineligible; however, the program has a wide range of definitions for "repairs" and "modernization." Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.
- In addition to putting down at least 3.5 percent of the current value of the property, buyers also must use a HUD-approved lender, appraiser, and a contractor approved by the lender for the repairs.
- Borrowers considering the FHA rehab loan program should be aware that loan rates typically run around a percentage point higher than conventional loans, and come in 15- to 30-year terms, either fixed or adjustable. Additional paperwork for inspection, appraisal, title updating, and the like can increase closing costs by $1,000 or more higher than the average.
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A Condo for under $140,000?
| Many properties in The Villages Golf & Country Club need to be updated! Please consider making a move to this Resort-Style Active Adult Senior community and use the FHA 203(k) rehabilitation program.
We have Villas and homes currently being offered from $139,900 to $769,000. CALL today at (408) 274.8766 for a tour and find your home in this "hidden gem" in Santa Clara Valley.
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Become a FAN of B&A Realtors. I welcome you, your family and/or friends to become my new neighbors in this beautiful community.
Sincerely,
Carla
Oh, By The Way
I'm never too busy for your Referrals
Client/Business Associate Testimonial:
Carla Griffin is one of the finest Brokers with whom we've had the privilege to work. Her attention to detail and ability to communicate information about a real estate transaction are both outstanding. She was a joy to work with on the Sale of our Villages villa and her valuable assistance made for an effortless transaction. ~ Geoff and Melene Smith (former GM of The Villages), Village Glen Arden, The Villages
Quote for the month:
"What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others." ~Pericles |
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| 7708 Galloway Drive
Best Location!
$359,000
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NOVEMBER FEATURED VILLAGES CLUB
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Mexican Trains Domino Group
The purpose of the group is to provide for an evening of fun, relaxation, and socialization and promote friendship for all Villagers who are seeking an outlet from daily frustrations and problems that we encounter. Any Villager who wishes to join for an evening of friendship and socialization is welcome to play with the group. All Village residents are eligible to be members of the group and no dues will be collected. For more information, contact Sylvia Rozewicz, 408.532.9601.
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| Carla Griffin
Broker/Owner/SRES
B & A Realtors 6056 Montgomery Bend
San Jose, CA 95135
Email to Carla
DRE#00710852
"Come for a Day and Stay for a Lifetime..."
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