This home was dirty and had been stripped! It was missing the entire kitchen, the 2 AC compressors, 17 interior doors, one furnace, the pull down attic stairs, lots of electrical fixtures, 1/2 of the master bath vanity, the hall bath vanity. And, it had termites.
But, an enterprising school teacher who kept her eye on the prize, listened to my advice and the lender’s advice and we were able to purchase this massive, 4 bedroom, 2 and 1/2 bath home with formal & informal living and dining plus an office all on a full basement for $93,000 plus repairs!
How did we do it? With a knowledgeable team! It started with Joe Farro, Premier Capital Mortgage, 678-289-6600. Joe created a system whereby buyers could buy homes that need TLC (non-structural issues) using the FHA 203K Streamline Loan.
This requires agents (such as me) who understand the process, to work with preferred contractors like Andy Matyszewski (ABM Services, 770-288-2368) to help home buyers identify homes that need no more than $35,000 in repairs. We need to make sure that the home will appraise for the purchase price plus the cost of repairs, then, once the buyer gets approved and closes, the contractor comes in, makes the repairs. When the repairs are complete, the contractor gets paid from funds set aside at closing by the lender. So, the price of the home was $93,000 + $35,000 in repairs for a total of $128,000. This home appraised for $136,000 after repairs.
Obviously this is a simplified explanation. For more detail—call us—Carla or Monty Haight! The FHA 203K Streamline may be the answer to buying that foreclosed property that needs some TLC to make it shine and make it your own.
Great work, you have turned this broken house into a lavishing home.
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