Northern Virginia Realtors: How to finance a home in Purcellville VA that needs a lot of work? A 203k loan.

How to finance a home in Purcellville VA that needs a lot of work? A 203k loan.

How do I finance a home in Purcellville VA that needs a lot of work? What is a 203k loan?

This property needs a lot of work eh?
John: I want to put an offer in on a house in Purcellville VA that has an awesome location and the perfect floor plan, but it needs some serious work.

My contractor estimated that I could do what I want for $30k....but I cannot get a loan to buy the house until the work is complete, and the work can't be done until the house has been purchased.

I am in a catch 22 situation if there ever was one.

Any ideas? I have heard of a program called a 203k, but do not know anything about it. What can you tell me?

Opportunities bloom with 203(K) loans!Steve: John, the 203k loan is a huge opportunity for folks in your situation. HUD'S FHA 203 (k) loan program will allow you to purchase or refinance a property and finance the cost of rehabilitating the property with one loan and one closing.


No second trust or old bridge loan here.

 



The advantages of the 203(k) loan is based on the projected value of the property after the rehab work is done AND takes into account the rehab expenses. The funds for the work are placed in an escrow account by the lender, and the contractor will get periodic draws from this account.

As an owner occupant, you can buy this place with as little as 3.5%
Old House? No problem with a 203k loandown, finance the repairs and even finance up to 6 months of mortgage payments if you are unable to move into the property until the work is completed..

Not only can you do any repair that may affect the health and safety of the property, but you can also modernize or improve the functionality of the home as well.



I will be providing more details about the 203(k) program in posts to come
and linking them. However if you need help with one of these 203(k) loans in Virginia or Maryland, please contact our friend Cedric Johnson at WestStar Mortgage.

Latest link with a more detailed description of the 203(K) program

He practically wrote the book on this type of loan and is a helpful and patient person.

Northern VA has some pretty spots!

 

 

He will not pressure you into something that will not work for you.You can reach him at:

CJohnson@WestStarMortgage .com

 

 

 

 

 

  Check him out at: www.CJBanker.com

540-882-4176

 

Why pay more and get less when selling your home? Jan and Steve Bachman of RE/MAX Gateway use professional photographers, create interactive photo floor plans, print full color brochures, and make an individual property website for your listing that goes out to 40+ public real estate search sites including Realtor.com, Trulia, Zillow etc.

 

We also create a custom photo tour that is sent to other agents and prospective buyers.

 

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RE/MAX Hall of Fame, Platinum Club, A Washingtonian Magazine Top Agent 2018

Happy to Help. No Hassle, No Pressure.

Jan and Steve Bachman are full time Realtors® with RE/MAX, specializing in Homes for Sale in Fairfax, Loudoun, Prince William and Arlington Counties.

 

 

       

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Comment balloon 2 commentsSteve and Jan Bachman • July 20 2010 04:10PM

Comments

Nice explanation of the 203K and hysterical pictures of what $30K CANNOT do!

Posted by Jenna Dixon, Empowers You With a Better Real Estate Experience (DRA Homes | Cobb County Real Estate ) over 8 years ago

Now any time you stop by Jenna I make sure to comment back. You frightened many with your threat to cut them out of your will if they ignored your overtures of camaraderie in one of your recent posts :-)

Posted by Steve and Jan Bachman, Realtors - Northern Virginia (RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax ) over 8 years ago

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