Reading my Florida Realtor News from Oct. 31 I found and interesting article about how older homes sell for less. I have seen that difference here in Palm Coast. However, I have not sold an older home to someone who used this federal program. If you are interested in looking into purchasing an older home and rehabbing it for yourself or resale; or if you are just interested in finding out more about how you might refinance your home now that rates are still very low and include some rehab money in the loan, I would be glad to dig in and help you. Talk To Ted!
Excerpted From Florida Realtor News:
"Homes built in 1990 or later sold at an average price of $256,292 year-to-date in 2013 while homes built before 1990 sold at an average price of $233,221, according to RealtyTrac.
“The lower price point on older homes is not surprising given many are in need of some rehab and are more likely to have maintenance issues,” Adger says. “But this also presents an opportunity for buyers willing to take on that older inventory. Those buyers can purchase at lower price points and face less competition from institutional investors.”
Government-backed rehab financing
Adger believes the Federal Housing Administration’s 203(k) program is the government’s answer to the problem of the aging housing supply. Owner-occupant buyers can take advantage of the 203(k) program to finance the purchase, rehab and upgrade of an older home, while homeowners can also take advantage of the program to roll rehab costs into a refinance.
“Many consumers may not realize the FHA 203(k) program allows them to roll in the cost of both minor and major rehab into the purchase financing or a refinancing,” says Dennis Walsh, CEO of REBuildUSA, which connects buyers and homeowners with lenders specializing in 203(k) loans. “This means the entire layout of these older homes can be changed to fit more with modern tastes and sensibilities.”
© 2013 Florida Realtors®
LINK TO MORE INFO: http://www.realtor.com/home-finance/homebuyer-information/what-is-an-fha-203k-loan.aspx?source=web
Excerpted From Florida Realtor News:
"Homes built in 1990 or later sold at an average price of $256,292 year-to-date in 2013 while homes built before 1990 sold at an average price of $233,221, according to RealtyTrac.
“The lower price point on older homes is not surprising given many are in need of some rehab and are more likely to have maintenance issues,” Adger says. “But this also presents an opportunity for buyers willing to take on that older inventory. Those buyers can purchase at lower price points and face less competition from institutional investors.”
Government-backed rehab financing
Adger believes the Federal Housing Administration’s 203(k) program is the government’s answer to the problem of the aging housing supply. Owner-occupant buyers can take advantage of the 203(k) program to finance the purchase, rehab and upgrade of an older home, while homeowners can also take advantage of the program to roll rehab costs into a refinance.
“Many consumers may not realize the FHA 203(k) program allows them to roll in the cost of both minor and major rehab into the purchase financing or a refinancing,” says Dennis Walsh, CEO of REBuildUSA, which connects buyers and homeowners with lenders specializing in 203(k) loans. “This means the entire layout of these older homes can be changed to fit more with modern tastes and sensibilities.”
© 2013 Florida Realtors®
LINK TO MORE INFO: http://www.realtor.com/home-finance/homebuyer-information/what-is-an-fha-203k-loan.aspx?source=web
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