But now, let's go into, I found this nice house, open that kitchen. It looks like my grandparent’s kitchen. And the bathrooms need to be redone what can people do?
Well, you know, there are products, there are financing products that make this work. Let's I'm going to quickly go back to one that's already been fixed up. If it's already been fixed up, you do normal financing. Right? If you do conventional FHA one of the things you have to watch out though, is if you find somebody who's flipping a house, FHA is going to require that to be six months, even unconventional, that can create issues if it's a month or two after they closed on it so that you have to have from the time that person who just bought it closed to the time you can actually take an application on an FHA loan, it has to be six months.
So that's one of the issues that can come up so a lot of times you'll see those flips that somebody's trying to sell and it's they won't sell it FHA and that's why I, okay. But if you're looking to fix up a home, we have a part of our company called Fix it mortgage. And on a fixed mortgage, we have a variety of products available that allow you to finance a home that needs to be that you want to do either needs repairs, or you want to do improvements on the home.
The key here is you have to understand if you find a home that needs improvements or needs, let's say it let's say it's missing carpet in the house. And so it's just underlayment, the bare floor, right concrete, the four by eight sheets of plywood, which is underlayment, that kind of thing that's not financeable on a normal FHA, conventional product VA on any of those, or if it has, you know if it's missing its HVAC, HVAC because somebody removed it, or it or that doesn't have sinks or toilets or they aren't working, or there's anything like that anything that is considered making the home unlivable. Now, unlivable doesn't mean, somebody won't live there, because I have had houses appraised that were unlivable that somebody had been living in. Okay, but, but most of us wouldn't want to live that way. So it's what's considered unlivable. So this product allows you to finance it.
So that's one of the benefits, it allows you to finance a home, that is not really livable at the time. Okay, that's number one. Number two, it allows you to finance the fix-up costs in the mortgage. So if you buy a house, let's say you bought a house, it's 200,000. And you have $80,000 worth of improvements that you want to do you want to read, you know, put in a new kitchen, redo the floors, whatever that happens to be, when you do that when you want to do that, now you have a $280,000 total investment in the house. Well, as long as the house appraises for gives us the equity we need, then we can finance it, or we can finance that entire amount.
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