How to buy a home with FHA financing. Buyinga remodeled home with FHA financing has a few extra steps than buying a short sale or bank owned home with the same type financing.
Purchasing a remodeled home has great perks like… just moving in without doing any work!
However, with the type of financing that you’re getting, FHA financing, they have a stipulation that they would like the Seller to own the home for 90 days before they sell it. If they do sell it before the 90 days and they sell it for more than 120% of what they purchased it for – they require 2 appraisals to make sure the value is correct and they also ask the Seller to provide all their receipts for the work that they’ve done to justify the price increase.
The banks funding your new loan are just trying to make sure that investors aren’t jacking up the price higher than where it needs to be… investors do neighborhoods a great service by taking an outdated home and fixing it up to increase property values – and of course they want to make a profit for their time, money and risk… which is fair but the lenders just want to make sure they are lending their money on a fair price and no one is getting gouged.
Make sense???!!! Do you have any questions about how to buy a home with FHA financing that has been remodeled?
For a free list of remodeled homes, move in ready homes in the area that you’re intersted in purchasing a home, contact us today and we’ll get the list to you right away. If you’re interested in learning more about the remodeled home financing options or to get prequalified, we work with some great FHA mortgage professionals who would be happy to help you get set up for a loan to purchase a home.
If you need more information about on how to buy a home with FHA financing contactu us today and we can walk you through every step of the process!