Fort Wayne Fixer Uppers and Handy Man Specials!

Buying a Fort Wayne home that needs repairs has been a catch 22 situation in the past. Banks won't lend money on a house that needs repairs, but the repairs can't be dont until the home has been purchased. Then along came the FHA 203 (k) loan.

This type of loan requires that you are credit worthy and put down 3.5% of the purchase price, but you can roll the repair costs of the property in to the loan.

The 203 (k) includes the following steps:

* The buyer and his real estate professional (ME!) locates a fixer upper or handy man special in the Fort Wayne area and executes a sales contract.

* The buyer meets with an FHA approved-203 (k) lender and arranges for a proposal showing the scopt of work to be done, including a detailed cost estimate on each repair needed.

* An appraisal is ordered to determine the value of the property after renovation.

* The loan then closes for an amount that will cover the purchase price of the property, the remodeling costs, and the allowable closing costs. The amount of the loan will also include a contingency reserve of 10-20% of the remodeling costs and is there to cover any extra work not included in the original proposal.

* When we close on the house, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the improvements and repairs during the remodeling period.

* Mortgage payments and remodeling begin after the loan closes.

* Escrowed funds are released to the homeowner during construction through a series of draw requests for the work that is completed.

HOW COOL IS THAT? If you think this type of loan may fit you, give us a call today and we can start searching for that fixer upper in Fort Wayne!