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More Than Just A Rehab Home Loan

Posted on August 26, 2014 by Ray Williams (NMLS #216267).

Are you having a hard time finding properties , even with the increase of inventory?  Tired of playing the bidding war? Well, you are not alone, there are many others who are just like you and are feeling the frustration.  There are a few things I am going to suggest that will hopefully help you in thinking just a little outside the box.

Buying a home is exciting, as well as, stressful and frustrating.  Finding a home that matches the picture in your head and also hits all your “needed” criteria with a few “wants” on the list  is really hard.  I think too often we put too much pressure on ourselves and our expectations, yet we also settle too often and too soon, thinking this may be our best opportunity.

Here are a couple ideas that may help.  What about looking at a home  in a lower price range than  what you qualify for, then walk into the home with a designers eyes and see if the house has all the right components, such as rooms, bathrooms, kitchen size, basement, etc. and do a rehab loan!  How about you pick the carpet, the paint, the kitchen cabinets, bathroom sink, etc.?  Wouldn’t that change your perspective a bit?

Let’s take it a step further, how about you add in some energy efficient upgrades. Wouldn’t it be great to get a break in your energy bill?  As well as get some money to help  with your closing costs?  (There is a program for this)

Both of these options are viable opportunities, there are two rehab loans available, an FHA 203k and a Conventional rehab.  And if all you’re wanting is energy upgrades there is the Energy Efficient Mortgage (EEM), this is an FHA loan that allows for energy efficient upgrades  which  are put into an escrow account.  Whether you can put 3.5% down, 5% , or more down, there is an option for you.  As for the energy credit, this is from the State of Colorado, it can offer you up to $8,000 towards your closing costs dependent on how much you can increase the energy efficiency score (HERS report), call us for details.

Buying a home is one of the most important and largest financial decisions you will ever make, so when doing this, wouldn’t it be beneficial to know ALL your options?  Wouldn’t it be great to build equity right as you move into the home?  It doesn’t matter if this home is just for the next few years or if you plan on living there for the rest of your lives to pass down generations, having built up equity is usually always the goal when owning a home. Why not get a head start?  Plus you get to design it!

If you would like to know more about these programs I strongly encourage you to talk to your lender, or give us a call!

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