A helpful article in Sunday’s Seattle Times reiterated a plan for financing fixer uppers that I’ve shared with many clients over the years – the FHA 203(k) rehab loan. I’ve written about it before here on DealsInSeattle.com, but it’s always helpful to get a reminder. Why do I recommend this loan so highly? Because the FHA 203(k) streamline rehab loan allows you to:
- Buy a fixer with as little as 3.5% down
- Fix it up using up to $35,000 of loan proceeds to make needed upgrades or repairs (the bank lends you money to do the repairs – you don’t need to use your own cash!).
- You have up to six months to complete the repairs or remodeling work on the house.
- The funds can be used for a variety of repairs and improvements, from roofing to flooring to appliances — virtually anything but furniture.
- It has less stringent qualifying requirements than conforming loans.
If you are thinking about tackling a fixer upper in Seattle, let me help you find a property that’s a deal. Then use the FHA 203(k) loan to fix it up. This combo is a great plan! Remember, you make money on a fixer when you buy, not when you sell. If you buy right and get a deal, you are much more likely to succeed.
If you would like more information on the FHA 203(k), give Brad Maher of HomeStreet Bank a call. Brad is an expert on these FHA Rehab Loans, and he’s been doing them for over 20 years (he really is an expert on these – everyone that I’ve ever heard that has successfully used the FHA 203(k) program has used Brad because he knows all of the complicated in’s and out’s of the loan). His office number is: 425-771-2500 ext. 222.
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[...] to buy this house and make it your own without using up all of your cash on hand. Check out my FHA 203k post for more info about how rehab loans [...]