203k Renovation in Action!

Here are some pictures of what can be accomplished with a 203k rehab loan, courtesy the Simone Group at YWGC Realty. Enjoy, these are quite impressive.

Exterior View

Interior View

Also, you may have many questions about how a 203k loans works. A great place to start is this FAQ from 203k Services. Here's an example:

Do I need a Licensed Contractor?

You do not “always need” a licensed contractor to do some home repairs, however, you will need a licensed contractor to provide a copy of their Maryland Home Improvement License (MHIC) and a copy of their Insurance along with a signed Construction Agreement must be submitted to your Lender before you can get final loan approval.

Your Lender has some discretion to approve or not approve your requested Contractor. Be sure to look for reputable Contractors as these are the people who will make your house a home you can live in.

You should request to be added to their liability and worker’s compensation policies as an “Additional Insured” so you can receive written notices of any changes to their policy. Otherwise they can cancel their policies and you would never really know.

We'll be posting more pictures and providing updates in the coming weeks so keep checking back. If you have a question that you would like us to answer in a blog post, send us an e-mail by clicking here!

Good Things to Come

As the economic forecasts improve and the media reports cautious GOOD NEWS folks are starting to feel more optimistic. With guarded enthusiasm and cautious optimism things are at least feeling better. There may be some hiccups disguised as opportunity around the corner in housing. The next group of foreclosed homes will be hitting the market in the next 2 quarters. Many of theses homes have been damaged by the exiting owners. If you are in the market or getting into the market you will see many listings say 203 K or conventional financing only. This is where the value and instant equity can be had. Consulting your Realtor early and often can get you ahead of the curve and into a house you can make your home with the right solutions. There will be more investment of time and energy and the process will be a little more challenging but with that comes opportunity. Do your research and you to can become a homeowner with equity.

www.rehabbaltimore.com

Buying a 203k Home on Sale

When folks go to the store and see something on sale they are motivated to make a purchase. Sometimes there is true value to the sale and sometimes the value is in their minds. The good thing about a Real Estate purchase is the appraisal tells you if you are getting a deal. With the number of foreclosures and short sales on the market it is easier to get value now. The 203k loan allows you to make the purchase of the house and make it your home in one loan. The appraisal tells you the value is there and not in your mind. You are also buying low which allows you to make money. Although there are no guarantees, home ownership has many long term benefits. There is a book called Missed Fortune if you want to read more about homes as an asset. A simple call to your accountant can also tell you if there could be tax benefits to home ownership. If you have not owned a home in the past 3 years you may also qualify for the $8000 tax credit.

www.203kservices.com

Opportunity to increase equity

In today's complex financial times everyone has become a financial expert. One sure way to make money is to buy low and sell high. Everyone who rushed to the market during the boom times was expecting to make money and some did. NOW is really the time to buy and invest in the real estate market. There is a huge opportunity in foreclosures and short sales to buy a home below market get a renovation loan and have immediate equity. Many first time home buyers will also qualify for the $8000 tax credit. Renovation loans or 203k loans provide a way for buyers to purchase and renovate in a single loan. 203k experts will help buyers with the process to make it easy to understand and implement. There are many factors that point to this being a great time to renovate and buy; rates are still low, contractors are slow and hungry, deals are available, and there is money to lend.