Are you in the marketing looking for a home and are thinking that can you buy a foreclosed home with an FHA loan? Then the answer is yes, you can. If you have an FHA loan, you are allowed by the FHA to purchase a home that is in foreclosure.
Is It Possible to Purchase A Foreclosure Using A FHA Loan?
Yes, it is possible. There are strict rules to buy foreclosed home, and the home should meet the FHA standards. Also, there are lessers benefits compared to a traditional loan.
The Requirements for an FHA Loan?
You must meet the requirements; else you will not be eligible to buy the property. Here are the details.
The Requirements Of The Borrower
- Credit Score: In most cases, loans are only sanctioned to those who have higher credit, but in this case, you are eligible for an FHA loan even if your credit score is low.
- Repayment Ability: You will need to provide relevant documents as there will be a verification held to ensure you are able to pay the debts.
- Become A Resident: Once the purchase is complete, you must shift to the new house. You will not be allowed to keep it as an investment or rent it out ahead.
Down Payment: You must be able to make a three and have half percent of downpayment.
What Are The Requirements For The Home?
- Should Be Evaluated: The property should be evaluated by FHA.
- Conditions: As per the FHA rules, the property should be in proper conditions, i.e., you should be able to live in it.
What Are Some Pros and Cons of Buying a Foreclosure With an FHA Loan
- You may get a good deal which is not possible otherwise. If you close the deal as a foreclosure, then chances are the cost will be less compared to doing it in other ways.
- Even if you have a low credit score, you have the possibility to own a property. This means that with a low credit score and at a lower price, you have the chance to close a good deal.
- The property must meet FHA’s requirements because the seller will sell the property as-is. If there are any repairs needed, they will have to be done by the FHA.
It’s absolutely okay to have a lot more questions when you are thinking that can you buy a foreclosed home with an FHA loan? And if you are not sure, do not worry about that. All you have to do is connect with Red Door Funding over email or a phone call; you can come to see us as well, and our specialists will be able to assist you. Call us at 832-539-1099 to speak with one of our specialists who will help answer and solve all your queries.
Buying property can be a big decision. Some people struggle with whether or not it’s the right decision for them. Learning the true cost of both land and also real estate can help you know what to expect when investing. So how much does land cost in Texas? What influences this price? Read on to get the answers.
How Much Does Land Cost in Texas?
The Real Estate Center at Texas A&M University reports that one acre of land in Texas cost an average of $2, 972 in 2019. However, there are a lot of factors that influence this price. The location of your land makes a big difference, as does the real estate market.
Average Home Price in Texas
According to Texas A&M, the median Texas home price in May 2019 was $240,500, which was a near-annual low. However, it’s important to remember that home prices are influenced by a lot of factors, just like land prices. Buyers can expect more shifts in 2020 and beyond due to COVID-19 and other factors.
What About Houston?
The same research from Texas A&M tells us that the median home price in Houston was $240,800 (in May 2019). This puts it right in line with the state-wide median price. As Houston residents know, the area is a great place to invest in property.
The Benefits of Fixing and Flipping
Houston has plenty of foreclosures and short-sales available for home flipping. Investors should be inspired by the median home prices, as quality properties can be found for a fraction of this price. Fix and flip these properties for a creative, lucrative investment opportunity!
We Can Help You Make Your Investment
Red Door Funding helps home investors purchase fix-and-flip properties. We have different loan programs to support a variety of needs. Check out our website to learn how we can help you.
Are you planning on renovating your investment property? If so, then you might need a plot plan. However, some homeowners don’t realize they need this plan until they are ready to begin their build. This means they have to put their projects on hold. But what is a plot plan, and why is it so important? Below, we’ll explain the purpose of this document.
What is a Plot Plan?
So what is a plot plan? Well, it’s basically a detailed sketch of your plot of land and everything on it. This plan is created after a land survey. It includes the exact locations of all buildings, including sheds, swimming pools, or anything else that has been built on your property. It will also include details on your landscaping and your official property boundaries.
Who Needs a Plot Plan?
A plot plan is important if you want to build on your property. You will need it in order to get zoning approval or if you need a permit. They are also important if your property is in a remote area, as they show your exact property lines. Finally, a plot plan can be helpful to contractors or landscapers if you are planning new projects but need professional advice before moving forward.
Can I Draw The Plan Myself?
Lots of people draw their own plot plans. This is a great option if you need the plan created quickly. However, some people are more comfortable hiring a surveyor. This is especially true for people who have large plots with many different features. Whether you create the plan yourself or hire someone, it’s easy to get this document.
Where to Learn More About Investment Properties
If you are ready to invest in real estate, then call Red Door Funding. We can help you navigate the process and also offer you financial advice. Our team makes the process easy so that you can enjoy the journey! Ready to get started? Take the first step and call us today!
The recent coronavirus pandemic is causing a lot of uncertainty. For many of us, that uncertainty is related to the housing market. COVID-19 will certainly have an impact on the economy. However, it’s not all bad news- especially if you own rental properties. Learn more about what to expect in the coming months below.
What We Know- And What We Don’t Know
While it might feel like COVID-19 has been with us forever, the disease is still very new. When experts talk about the economy, they are comparing our situation to other financial crises in the past, such as the 2008 recession. Because the 2008 crisis had such a negative impact on the housing market, it is easy to feel discouraged about our current situation. However, the National Real Estate Investor reports that the majority of recessions do not impact the housing market. We don’t know what the future holds, so there is no need to panic at the moment.
Good News for Investors
Regardless of what happens with the economy, people will still need places to live. This simple fact is one of the reasons that real estate investments make sense, even during hard times. Renting out your investment property will provide security to another person in your community. It’s a financially smart decision that you can also feel good about.
Renovations During a Pandemic
It’s important to be realistic about the current situation. Lots of industries (like manufacturing and construction) are currently on hold. This means renovating your property might be challenging right now. However, you can avoid issues with a little planning. Call around to local contractors and see who can work with on your new property.
Ready to Invest in Real Estate?
Red Door Funding makes it easy to get the funds you need for your investment property. Explore our website to learn more about the loans we offer. If you have any questions, give us a call at 832-539-1099.