More and more these days in the Prince William County Virginia area, many homes that are truly gorgeous and renovated are not available to the first time buyer who is preapproved for an FHA Loan.
Everyday, I work with buyers who call all excited when they see a home in their price range that is perfect for them based on the photo's that they are seeing.
Then I have to drop the bombshell when they ask."Peggy, What Does NO FHA LOANS due to FHA Seasoning Mean In The Comments?"
Well, that seller cannot accept an FHA Loan. The only way you can buy that home would be to use Conventional Financing. That means you would need an additional one and half percent down payment to equal the minimum five percent down payment rule on Conventional Loans.
So let's say it was a $225,000 house x Five percent down payment= $11,250.
However FHA only requires a three and half percent down payment which = $7850.
That means you the buyer would need an additional $3400. to go to settlement.
The next question is always. Why?
Simply put. FHA has extended a ruling that allows investors who buy a foreclosed home to be able to FLIP them after the home has seasoned 90 days. This ruling is in effect until May 2010. So what that means is a person can buy a FORECLOSED HOME only, and renovate it and flip it at a higher cost. This program is in place to help revitalize neighborhoods across America and it's working. Most of these flips are stunning as seen in some of the photo's above. Now is it fair than an investor can buy a foreclosed home for cheap and fix it up and make tens of thousands of dollars in a few months? Yes...because they take the risk and they have the ability to qualify and have the vision needed to transform ugly homes into showplaces!
The good news is the these homes are MOVE-IN Ready and will require almost nothing except paint and your personal touch to make them home.
So what do you do as a Buyer to insure you can buy one of these homes:
- Make sure your Buyers Agent know the rules and checks out everything about this home so you do not get caught up in a contract where you cannot perform.
- Talk with your Loan Officer to see if you can qualify for a Conventional Home Loan
- In today's market the more flexible a buyer you are, the more opportunities you will have.
- Do you need help finding a home?
- Find out now what kind of home loan you qualify for GET STARTED HERE
Contact Peggy James or Erick Blackwelder of Erick and Company of Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085 (Peggy) or 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Montclair, Dumfries, Occoquan, Dale City, Gainesville area's
" You would want to hire me as your REALTOR®, if you're looking for a high energy, positive, take charge,knowledgeable person that is passionate about helping you get what you want! "
That's me! I'm easy going, and prefer to communicate by email, text and I use the latest technology to not only to stay in touch with you, but to market homes for sale as well and to negotiate.Still not sure I'm the right local professional for you? Check out my LakeRidgeVARealEstateNews blog or head on over to my LakeRidgeVAHomesForSale.com website to learn how I have others just like you sell or buy a home in the local area.
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The area's I service in Virginia are Lake Ridge, Woodbridge, Manassas. If you live outside these area's let's talk. If you have found my information helpful and you like what you see, chances are if I cannot help you, I know another REALTOR® who can.
Tip: when reading any blog post, pay close attention to the date post was written as homes sell quickly. Call author for up to date information.
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Note: This real estate blog is written by me Peggy James and it is is my opinion and may not reflect the opinion of Exit Choice Realty 14067 Crown Ct, Woodbridge Virginia 22193.
I have been blogging since 2008 and I am a full time REALTOR® .