Steve D Valentine walks through the FHA 203(k) loan, which lets you buy a fixer-upper and finance the repairs together. In his example, a $335k house with a new roof, pool, and interior work gets appraised post-renovation, and the bank lends up to 110% of that value. His company handles contractors and bids to make the process simpler.
Questions this video answers
Approximately $335,000 ("about 335").
Up to 110% of the appraised (post-renovation) value.
Chapters
You are missing the one forgotten loan program in the current market. So I'm in a house here that while you might be looking at maybe four or five hundred thousand dollars homes, and they're kind of okay, but what if you could take a home like this and actually remodel it the way you want to while using the bank's money? So here's how a 203k loan works. You actually buy the house for the set price, so in this case, for about 335. And then you have a budget on what needs to be done to this house, Right? So in this particular house, roof, pool, interior, all those things. And then the appraiser is appraised at an as is or an as built value. So in this case, on this property, the appraisals can lend, the bank can lend you 110% of the appraised value because you're going to be making it new. Here's the complication. People think like, oh, where am I going to get a contract? Or what's going to do? That's where we come into play. We have the house or houses, and we have the contractor that already has the bid on it and can go through it with you. Once you put in the contract, so you can see all the pieces up front, it takes out all the work that you have to do on this. And then you get to go through with the contractor and the designer and design the house the way you want to and fix it the way you want to. And here's the best part. Now you have a house that is completely refurbished for you. That's going to last a long time rather than going out and buying a used house. It has an older ac, it has an older roof. These are all going to be costs and cash out of pocket later. So why not avoid all of that and use a 203k loan? Hey, I'm Steve Valentine and I'm with Limitless Real Estate Strategies. And this is just one strategy that will help you buy maybe your first home. And we can also talk about what about buying that first home, renovating it, knowing it's going to be a rental in the future, and we can do this all over again next time.
