Colorado Springs Vintage Homes Blog
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Financing matters!
If you are getting ready to sell a home, it’s important to know what kind of financing buyers use to purchase a home in Colorado Springs
Are you asking why I would say this? Essentially, financing matters.
If you would like information about selling your Colorado Springs Home, call Kathy Torline at 719-287-1049
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Different financing options effect home sellers in different ways
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Buyers who use FHA and VA financing have certain closing costs they cannot pay for, hence the seller ends up paying for these costs. Over 50% of Colorado Springs buyers are currently using VA or FHA loans.
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Both FHA and VA buyers typically take about 45 days to close.
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Conventional loans can typically close even faster than FHA and VA loans, maybe within 30 days.
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If a home needs substantial repairs, a great option is to market it to be financed with a FHA 203K loan.
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Both VA and FHA appraisals can come back with appraisal conditions that can be required home repair items to be fixed before the loan can be processed. As an example, FHA requires the home to meet minimum living conditions which could cost the seller money; including repainting areas on the exterior of the property where paint is flaking and peeling.
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Both VA and FHA loans limit how much a seller can contribute towards the buyer’s closing costs and down payment
Here’s a chart that shows the financing for homes sold in Colorado Springs for the first two months of 2011.
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Kathy (719-287-1049) KTorline@msn.com
Where do I find a loan to buy a distressed property?
Want to buy a Colorado Springs Foreclosure, check out FHA 203K Loans –
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With foreclosures at an all time high in the Colorado Springs area, it’s a perfect time to pick up a good deal on a home. BUT, the challenge is that many of these homes need work and many buyers don’t know they have options on loans that can help them purchase the property as well as still have money for the work that needs to be done. One of the best programs around is the FHA 203K Loan. It provides a great way to buy a distressed property and to still have money to get the repairs done. Let’s start with some of the basics.
What type or properties are eligible?
- A one to four-family dwelling that has been completed for at least one year, including townhouses and condominiums
- The program can also be used to convert a one-family dwelling to a two-, three-, or four-family dwelling
Where can I get more details?
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The HUD web site has more information than you probably ever need to know, but it’s worth reading the highlights on the web site. There is also a great section about FHA 203K Loans on the FHA web site.
What type of Improvements are eligible in the FHA 203K Streamline?
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Repair/Replacement of roofs, gutters and downspouts
- Repair/Replacement/upgrade of existing HVAC systems (When and why should I replace my furnace?)
- Repair/Replacement/upgrade of plumbing and electrical systems
- Repair/Replacement of flooring, tiling and carpeting
- Remodeling, such as kitchens and bathrooms
- Weatherization, including storm windows and doors, insulation, weather stripping
- Purchase and installation of appliances, including free standing ranges, refrigerators, washer/dryers, dishwashers and microwave ovens
- Repair/replace/add exterior decks, patios, porches
- Window and door replacements and exterior wall re-siding (Colorado Springs home Improvement — it’s all about the windows)
- Basement finishing and remodeling
- Basement waterproofing
- Septic System and/or well repair or replacement
- Lead-based paint stabilization
- Accessibility improvements for persons with disabilities
The next post will include a step-by-step guide of the application process.
If you enjoyed reading this article, why not Kathy (719-287-1049) KTorline@msn.com
FHA loan changes coming soon
Attention Colorado Springs first time home buyers
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
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HUD Secretary Shaun Donovan recently announced some changes to FHA loans that could come as early as the first quarter in 2010. Since a large percentage of first time home buyers use FHA loans, some home buyers may want to get a home purchased before these changes come into affect:
Here’s a quick summary of some of the expected changes:
- Seller concessions may be reduced from 6% to 3%.
- Many buyers ask the seller to pay for all or a portion of their closing costs, and the lower seller concessions may make this more challenging to do.
- Minimum credit scores will be raised for FHA borrowers. (the speech didn’t give specifics on what this credit score was going to be raised to.) Read the rest of this entry »
