We are a bit surprised at how little people know about buying a house. Lee and I both did our time in real estate. Lee once had a mortgage license and a title agent license. I have a real estate broker’s license and a contractor license. Many people believe that it is nearly impossible to buy a house. From my experience the easiest people to get a loan for are people with a bunch of money or, and this may surprise you, people right around the national low income levels.
Buying a house or remodeling a house generally needs a mortgage since most people do not have a couple of hundred thousand in the bank. The current housing market has actually made it easier to buy a home. For example, the HomePath program is a Fannie Mae, government sponsored loan specifically designed to offer foreclosed homes to potential buyers. These houses are usually in poor aesthetic shape so the loan can give you up to $35,000 over the purchase price to fix up the house. The bottom line is that you have your own place that has been renovated to your liking.
The 203k loan is an FHA first time buyer loan that lets you get even more money to fix up a house, up to $729,750. This means that you can look at the most dilapidated house and make it into a beauty. Of course, this requires a certain amount of vision on your part. That was always the hard part for me. I would bring a client into a house that matched their criteria and they would look at it and not like the color of one of the bedrooms. My response was that I would get the owner to paint it but that was always beyond the buyer’s scope of imagination.
These two types of loans are for the inventive and savvy first time home owner. They are not for the faint of heart. Go ahead and ask a billion questions and, when you are satisfied with the answers, build your dream home.
This is a sponsored post in partnership with Niche Parent Network & Conference, all opinions are my own.