Top Stories I went to an interesting class at the Association of Realtors this week, the title was "Distressed Property Solutions - A Reconstructive Approach to Financing Homes". This very informative class presented information on four different financing options that allow a buyer to also include renovation costs in the amount they borrow to finance their home purchase. For example, under one program, if the purchase price of the home is $100,000, you can also finance up to $35,000. in renovating the home.
Today, there are 154 single family homes for sale in the Pine Island communities of Bokeelia, Saint James City and Matlacha. Of those, 104 (more than 2/3) are twenty years old or older. So, it makes sense, especially with today's low interest rates, to plan on financing some home improvements when purchasing an existing home.
The waterfront home shown above is for sale on Palm Avenue in Saint James City, the asking price is $230,000. and could be a candidate for this type of loan program.
Types of repairs/renovations allowed by these loan programs include: appliances; weatherization; new windows; doors; insulation, exterior decks; patios; porches; siding, floor coverings, paint, plumbing and electrical improvements; and improvements for handicap accessibility.
Two of the loan programs allow for major, structural renovations and repairs including: structural improvements; adding a bedroom, bathroom, garage or pool; completely gutting a home.
Buyers must either be a general contractor or use a general contractor to complete the repairs.
Loan down payments are as little as 3% down on an owner occupied home, and as little as 15% down for investors or second home buyers.
The Homepath Renov program is only eligible for Fannie Mae foreclosures. The other programs are: FHA 203k Streamline; FHA 203k standard; FNMA Homestyle. For more information on the FHA 203k programs, go to www.203kloans.us
So if you are looking for a home, love the neighborhood and location, but the home needs repairs or updating, don't let that be a deal breaker...you can finance the home improvements when you get your mortgage! For more information about Pine Island real estate, contact me, Erika Foye, real estate broker for All Island Realty, Inc. at erikafoye@embarqmail.com.
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