It is an excellent time for consumers to consider purchasing a home and the opportunities for a below market purchase price abound. Today’s real estate market provides an ample supply of home inventory with unfortunately too many of these homes falling in the short sale, foreclosure and bank-owned (REO) categories. While foreclosure listings are a great tool to locate and introduce yourself to a property, they are not going to provide you an accurate assessment of its value.
Assessing the “deal” you get on your home’s purchase price in consideration to its current condition, may not be the good value you initially expected. Many of these homes have been on the market for some time and neglected by their previous owners and many are in need of repairs. Additionally, most buyers want to make the home “their own”. You’ve found the home, you love the location but now you want to personalize it to your tastes. Whether it’s an update to the interior, improving or adding functionality, or in need of a complete overhaul down to the studs, this is where an experienced licensed remodeling contractor can provide the most value.
In assessing your purchase price of a home in need of repair, a 203K loan may be a financing product to consider. Most mortgages require the condition and value of the property provide adequate loan security, and many of today’s new home buyers do not have immediate equity in the home to qualify for traditional equity lines to make improvements. The 203K loan program is a federally backed loan through HUD and provides the ability to finance the purchase of the property along with the improvements needed and/or requested based on the projected value of the property with the work completed. Contractors must be licensed General Contractors and approved through the lending institution to provide services for this loan type. Furthermore, if the home was built prior to 1978, before any construction work can begin the home must be tested for lead; requiring the services of a certified lead renovation firm.
Today’s home opportunities are greater than ever and favor the bargain-hunter buyer. But as a buyer educate yourself when assessing your deal.
DP Contracting & Consulting is a fully licensed, bonded and insured General Contractor in Concord, NC specializing in remodeling/renovation, experienced in 203K loan processes and is a certified lead renovation firm. Visit their website, at www.dpcontracting.net or call them at 704-970-7268.