Home Improvement Loans for Fixxer-Uppers!

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Good post Margo…..this program is perfect for the first time home buyers who purchase fixer uppers.

Via Margo Otey (REMAX EXECUTIVE REALTY):

Home Improvement Loans for Fixxer-Uppers!

Our market is being driven by first time buyers taking advantage of lower prices to get into the housing market.

Many of the best buying opportunities are foreclosure homes. The down-side is often the poor condition of these empty properties. A low-downpayment, first time buyer can’t take advantage of these homes because they don’t have the extra money for post-sale improvements.

The solution: An FHA-guaranteed 203(k) loan. With a minimum downpayment of 3.5%, the buyer can wrap up to $35,000 in post-closing renovations into their base mortgage. Qualifying properties must be more than 1 year old, and be a 1 to 4 family home.

To make this work, the buyer obtains contractor bids for the renovations and submit these with their financing application. The bank appraisal will be adjusted to reflect the improved value. At closing the renovation funds are put into an escrow account. Repairs must be made within 6 months. Contractors are paid out of the escrow.

If funds remain after repairs are completed, the money is applied directly to the outstanding loan principal, reducing the balance of the mortgage.

For more information on how to take advantage of this program, feel free to contact me!

About susanmorrison

After living in Walpole, MA for many years, our family was transferred to the west coast when I was a senior in high school. In 1983, I graduated from Mission San Jose High School in Fremont, California. I am also a 1987 graduate of Providence College with a major in liberal arts and a minor in business administration. I bring to the table many years of sales experience beginning with thirteen years in Corporate Sales at Delta Air Lines. I'm the mother of three children and I'm very active within the Franklin, MA community. I am also a cancer survivor and support the American Cancer Society Charities.

My husband and I have built five homes and I've lived in a variety of other locations including Toronto Canada, Irving Texas and my current home in Franklin, MA. As a result of all my moving around, I came to the conclusion that I was an expert at moving...why not become an expert on the other side of the table? I earned my real estate license in 2004 and believe that I have found my true niche'. I can empathize with my clients on a variety of levels; whether they are buying or selling. And, like so many other good realtors out there, I believe that possessing good communication skills is one of the many keys to success.

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