Ok, so financing isn’t as easy as it used to be in the days where you just wrote down how much you made and the name of your dog along with your cousin’s phone number for proof. You actually have to back up your numbers and the banks have tightened the reigns. If you have a good work history, decent credit, have a low debt-to-income ratio and earn a steady paycheck, you can probably get a loan. Interest rates are still great and it is a buyer’s market. If you are considering a long- term investment and you like the idea of living in your own home, rather than renting one from someone else, then perhaps now is the time to buy. Buy low and sell high is the name of the real estate game, right? Well now is the time for that. Before you get out there though, here are a couple of programs that are worth knowing about if you find yourself thinking that now is indeed the right time.
FHA 203K REHAB LOAN:
This loan allows the buyer to borrow up to $35,000 above the selling price for improvements, rehabilitation, appliances (for those short sale homes that have been stripped), energy efficiency upgrades, etc. This is an opportunity to find a home that kind of works and have the funds to really make it yours. The FHA 203K rehab loan is a specially designed home loan that provides the potential buyer the following advantages:
- Allows repair/renovation costs to be rolled into the loan
- Major items ARE allowed (Foundation)
- Low down payment (3.5%) and seller can pay up to 6% towards closing costs
- Close before repair/rehab begins
- Only one closing. Money disbursed on a draw basis after closing as construction iscompleted
This loan is one of the only ZERO DOWN, 100% financing home loans available. Granted, you
have to buy in a rural area (and we don’t want you to leave MLT), but it is such a good program, I
couldn’t not tell you about it. Here are the specs:
- $0 Down, 100% financing is available.
- No Private Mortgage Insurance
- Terms are up to 30 years allowing you to lower monthly payments
- Lower income families and those with blemished credit can qualify
To see if a potential property qualifies (think Arlington, Monroe, etc )…
check the eligibility of a USDA loan here.
*If you would like any additional information about these loans or would like to find one better suited for you, feel free to contact me.
**If you are in the mood to start checking out real estate in Mountlake Terrace, don’t miss this weekend’s Open Houses and print out the Map to get you there.
***As a bonus, here are my Top 7 Favorite Active Listings in Mountlake Terrace.
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