Thursday, November 12, 2015
FHA 203k has Arrived in Graeagle CA
Opened another office in Graeagle CA to service Sierra and more of Plumas Counties, as well as parts of Nevada County that are closer to Graeagle than formerly possible.
Why do you need to know about this? Easy, places like Loyalton, Almanor, Beckworth, Verdi, Portola, and even Truckee (Nevada County) can be accessed much easier from this office.
What is a 203k loan?
Simply a tool for Realtors to sell more houses. This program allows you to sell more home as it opens up all the "fixer" type properties to the everyday client. Many people might purchase a home if they knew what the repairs would cost to fix it up but they don't. Well now they can easily find that by using a 'feasibility report' or 'feasibility analysis' which we provide for a modest fee. We have two feasibility clients. One is the seller, the point of this report is so you can help bring your seller to reality when they are asking too much for the property and you know it won't sell at that price. But moreover it also pin points the repairs so your seller gets the most they can and be fair to all concerned.
This is a quick look at the property for the buyer or the seller of a property.
Seller Feasibility Report
- If a seller wants the highest possible amount for their property and they understand it needs work this product is a must. We provide a limited report that identifies the items that are health and safety or of necessity under the HUD/FHA Minimum Property Standards (MPS). This is all the seller is interested. What repairs are needed to bring my property to the MPS to get it sold.
- If the seller is a bank or lending institution we also provide an estimate of the cost for repairs that most potential buyers might do such as update the kitchen or bathroom(s) where they were adequate for MPS.
This gives the potential buyer info they need to make a decision now.
Buyer Feasibility Report
- If a buyer is about to place an offer on a property that requires repairs they must have a clear idea of the cost to make the repairs. If the property is being sold for $250,000 and needs $150,000 in repair it must appraise at $400,000 or it doesn’t make any sense to buy it. If the value after improvements to MPS is only $350,000 then the home is only worth $200,000 “as is”. Knowing that number for the repairs is part of your due diligence prior to purchase of a fixer.
- On the other hand, the buyer may also want to know the cost of the additional repairs they may want to add to the mix. In that case a Feasibility Analysis from The Mike Young Team will also provide a quick estimate of those repairs as well. So you actually get two estimates, one for MPS which is used to help you with your offer and, the second one with your additional improvements that make this YOUR HOME.
Let us know if you need us to come by one of your weekly or monthly meetings for an educational session.
Out of area owners
You may service out of area owners and that is okay too, If their homes or second homes need repairs we have a couple of programs they can use to get their homes fixed up for the spring as well. Many of these out of area owners who use this area for their summer homes will be leaving the area for their winter homes by the end of this month. These non-owner occupied programs have purchase and renovation limits or refinance and renovation limits up to $3 Million. These are good for investors as well as second home buyers.
Posted by 203konline