With many homes for sale in Nashville receiving multiple offers, because of the limited inventory, it can be very frustrating when searching for your dream home. You may think that your home options are limited in a market like this, but by thinking outside the box, you may be able to get a leg up on other homebuyers. Enter the renovation loan or FHA 203(K) as it is called.
How Can Nashville Home Buyers Benefit?
It may come as a surprise to a lot of home buyers that you don’t actually need to have bunch of cash on hand to do these types of improvements. What’s great is, that these loans cover the mortgage and cost for repairs, sometimes only requiring 3.5% down. This is a great tool for people looking to purchase in a certain neighborhood , who might not be able to afford it by conventional means.
There are two types of 203(k) loans, with Fannie Mae and Freddie Mac having their own separate qualification. To figure out which loan is right for you, you will need to determine the purchase price of the home as well as the cost for repairs.
Some Nashville neighborhoods that are ripe for this kind of loan are East Nashville, Germantown and even Sylvan Park and 12 South to some degree. East Nashville has seen home values rise almost more than any neighborhood in the city, creating a higher entry point for homeowners.
The key is to be patient and be able to overlook what at first seems like a distressed home. As long as the foundation and structure of a property are sound, try to look past some of the cosmetic issues. It’s amazing what new flooring, paint and hardware can do for the appeal of a home and these repairs are fairly inexpensive. By getting creative, you are opening up more housing options. This could help land you in a neighborhood, you once thought was not possible.