Francois Bacon
A lot of people haven't heard of the FHA program that is called a 203K. This is a situation when you are purchasing a house that needs a lot of work. You can get a deal done on the house for an acceptable price and then you can get a contractor in to give you estimates for the work to be done and this can include upgrades like granite, stainless and most other upgrades. You then tell your lender that you want this much money in the 203K. The extra money is held in escrow and you take construction draws as you do the work. You have 6 months to complete the repairs and you can defer payments until you are finished at that time they will reappraise the property and your mortgage payments will begin at that time.
A perfect home for this mortgage would have been a canal front home in Cocoa Beach with a pool that was listed at $169,000. If you put a $100,000 in this home it would be a beautiful home with a pool on the canal for $269,000 or about $50,000 under market value. Unfortunately this home is now under contract.
Peace out Friends!
Jim Bagwell
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