203K Loans Provide A Great Opportunty For Buyers In Shaw

203K Loans Provide A Great Opportunity For Buyers In Shaw

Renovations in Shaw continue to sell quickly and at high prices. However, buyers looking to “build equity” and put money into shell or partially rehabbed properties have a tremendous opportunity in Shaw using 203 K loans. The neighborhood has been improving for 30+ years and some of the early renovations are in need of a facelift. 203k loans provide an owner occupant the ability to buy a home (that needs work) at any price (supported by an “as is” appraisal) and add a renovation loan for improvements (supported by a “as completed” appraisal). To qualify, you need a credit score of 640 or higher and a down-payment of 3.5 percent of the total purchase price and renovation costs. Therefore, if you buy a home for $100,000 that needs $50,000 worth of repairs, then you need a down-payment of only $5,250.  The mortgage can be used to renovate one- to four-family homes. This includes conversions from a two-family to a single-family or a six-family to a four-family. The trick is that the final renovation must be a four-family or smaller. The 203k mortgage finances structural alterations and reconstruction, structural, tuck pointing, new roofs and gutters, new and updated kitchens and baths, flooring and tile, energy conservation improvements, major landscaping elements – decks and grading, and upgrading systems, such as electric, plumbing, furnaces, air conditioners, water heaters.   Further, the buyer may be eligible for the 25% historic tax credit. The tax credit is paid for every dollar you spend in the construction process (plumbing, electric, drywall, paint, etc excluding appliances, patios and some other restrictions. The SNHC can assist in educating the buyer about the historic tax credit program. Many people are surprised to learn about all the incentives provided for new home buyers in Shaw. As voted “Best Place to Live” by the Riverfront Times in 2010, Shaw is an increasingly trendy and popular place to live. If you would like more information 0n any of these programs, please contact me at our office or just drop in! We are here to help.

 

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About Shaw Neighborhood Housing Corporation

Shaw Neighborhood Housing Corporation is a not-for-profit organization that promotes responsible development, affordable housing and diverse character and vibrancy in the Shaw neighborhood located in St. Louis, MO. Through its local development and community progress expertise, the organization serves as a resource to developers, real estate agents, neighborhood residents and business owners.
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One Response to 203K Loans Provide A Great Opportunty For Buyers In Shaw

  1. Great to see Shaw is promoting the 203k loan. It truly is a unique problem solver of a loan. Hopefully the Realtor community warms up to the 203k loan, since most don’t understand it.
    203k loan

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