Temecula Property: Estates and Flipping Houses

Temecula Estates

Flipping Houses

Temecula Estates

and

Flipping Houses

Is it something I want to do?

With all the shows about making money with Temecula property Estates and flipping houses naturally many folks wonder if it is something that they can do. Buyers walk into a house that has been upgraded or reconditioned and swoon over how nice it is.  Where do you start or where can you get the money from. If you don’t have a lot of money but want to try this you can actually use a FHA 204-k loan to make money flipping houses from time to time. The key is you cannot have a FHA loan that is in effect. (no concurrent loans can be taken out at the same time)

Below is an excerpt from Prospect Mortgages Website that shows the criteria for the loan:

Is a 203(k) Loan Right for You?

  1. Buy a “Fixer-upper” or REO property needing renovation
  2. Get funds to both purchase and upgrade your dream home
  3. Refinance and renovate your existing home

Advantages of 203(k)

  • Loan amount based on the home value including renovations
  • Only one loan needed to both purchase and improve
  • Refinance and rehab your own home
  • Can be used to buy property otherwise not eligible for financing

Prospect has nationwide 203(k) specialists that can answer all of your questions.

Who Qualifies?

  • A minimum down payment of 3.5%*
  • A credit score of 640 or higher
  • You currently have no other FHA loans
  • You DO NOT have to be a
    first-time buyer

Ask your loan officer about additional requirements.

FHA Loan limits vary by market. They currently range from $271,050 to $729,750 for a single family property. To check the current loan limits by county, go to entp.hud.gov or check with your loan officer for the current limits.

Flipping Houses is not for the faint of heart. You DO have to include contractor bids to get the excess amount to fix up the property. Your loan amount is the purchase price PLUS the monies needed to repair or upgrade the house. The work must be started within 30 days of close of escrow and must be completed within 6 months. Once the property is finished hopefully there is equity so you can flip the house for a profit.

If you have any questions or want more information Call: 951-200-4610 Linkpin Realty Your San Diego & Temecula Source for All your Real Estate Needs.

CA BRE Corp # 01873081