The new DC Open Doors $0 Down expansion to include FHA 203K Streamline loan products opens up a huge amount of opportunity for first time homebuyers in downtown DC.
“The recently announced FHA 203K Streamline loan inclusion within DC Open Doors is the missing piece that a lot of our prospective buyers have been looking for,” said Gerard DiRuggiero, Principal Broker at UrbanLand Company. “The challenge of DC Open Doors has been to find properties with lower price points that are easier to afford and qualify for; the ability to buy fixer upper homes in need of renovation or touch-ups opens up a lot of potential for older homes with lower selling prices for first time buyers.”
In the past, first time buyers who were already stretching to qualify for DC housing prices were coming up short in finding a home or condo that they can afford yet also see themselves living in for 5, 10, even 15 – 20 years. Those wanting to purchase a lower priced home in need of repairs or updates could buy at a lower price, but often would not have the cash available or the knowledge to perform required work. Those who were cash strapped or without do-it-yourself skills would not consider these lower priced homes a valid option.
Now, with FHA 203K’s renovation funds and DC Open Doors’ $0 Down program, DC residents or those moving into the city can purchase properties in need of renovation, repair or fix-ups, and get $0 down combined with up to $35,000 in renovation funds financed within the mortgage.
“The $35,000 is great – it really lets you do a lot within the structure of an older home to make it more modern, exciting and comfortable. The $35,000 is not free money – it gets rolled into the mortgage and is calculated within the full amount borrowed on the mortgage. You have to pay it back as part of your normal mortgage payments,” c0ntinued DiRuggiero. “The goods news is that for a buyer with strong credit going for a 30 year mortgage, you can take the entire $35,000 to use for updates and it only costs you about $175 more per month in your payment.”
The FHA 203K renovation funding of up to $35,000 is often enough to cover a new kitchen, central AC, bath updates and more when you buy an older home. We see this as a huge opportunity for the first time home buyer seeking value – older homes or “fixer uppers” can often be purchased at very favorable prices, and FHA 203k lets you put your own personal touches on the home you purchase!
So how do you know what to look for when seeking out an investor or fixer upper home? Talk to an experienced real estate agent who can help you search for a desirable target property.
“There’s an increase in risk in buying homes that need work or renovation and its important to have quality guidance on your side. There is a careful balance between home price, the amount of known/documented work needed, and the effect of the renovations on the home’s future balance that must be understood by the buyer,” concluded DiRuggiero.
UrbanLand Company is a downtown DC based real estate brokerage catering to homeowners, homebuyers, real estate investors and private developers. We regularly run Investor Workshops for beginning real estate investors, and our hands-on DC Open Doors informational workshops continue to be a popular destination for potential first time homebuyers in the city.
More information can be found on our DC Open Doors information site at http://www.dchfaopendoors.com. Assistance is also available at 202.299.9223 or at Info@UrbanLandCompany.com.