HGTV-like Projects? With Funding?

How Smart is This?

The success of television shows, especially the ones on HGTV that focus on house purchase and renovations give an ambitious audience a sampling of what can be done with a little time, money, and a whole lot of patience.

One of the biggest obstacles that prevents most people from 'jumping in' is the lack of money to buy a piece of real estate and have the money needed to fund the renovation project.

A Practical Solution? 

The federal government offers a loan program that provides funding for the purchase of a house and includes money to repair or renovate it. It features a 30-year amortization, low interest rate that remains fixed for the life of the loan, and it even allows deferred payments for the first 6 months.

Even better: the down payment requirement is only 3.5% of the loan amount.

Scenario:

A large, vacant house (foreclosure?) is available that needs extensive repairs and renovations. Its current value is $110,000 but its projected value after the renovations have been completed is $249,000. The cost of the renovations is estimated to be $80,000 which includes a new kitchen, new appliances, new bathrooms, new plumbing, new wiring, new floors, new HVAC, new windows, new roof, fresh paint, and new landscaping.*

Purchase price: $110,000
Renovation cost: $80,000
Total down payment requirement: $6, 750

Loan amount: $183,250
Estimated payment: $1,350/mo.

Equity (profit) at completion of renovations: $65,750

Would you like to know more about this program? Call me at (804) 305-9553 for a friendly conversation and to explore the possibility of utilizing this unique government mortgage. Use my 30 years of experience as a licensed Realtor to simplify the complicated twists and turns of any real estate transaction. It costs you nothing!

Search the entire Richmond area MLS at: www.Richmond-HomeSearch.com


*This scenario is a realistic description of what can be accomplished under this program. All work is performed by licensed Contractors. Many possibilities similar to this one exist in the Metro Richmond market.