As a newly married couple, Sean and Marie were anxious to lay down roots near their family and friends. Money from wedding gifts added a little to their savings, but not anything near what they would need for a minimum down payment on a $350,000 house.
As first-time home buyers, they couldn’t afford a mortgage that size anyway.
Homes along the Rte. 95 corridor don’t come cheaply, and the scenic Eastern Shore-side of the Susquehanna River near Aberdeen Proving Grounds may not be the most populous, but homes there certainly command a decent price.
If Sean and Marie were going to afford a home near their circle of friends in the Earleville, Maryland, area, they were going to have to get creative.
Fortunately, Lee was there to help. A whiz with numbers and intimately familiar with federal government lending programs, Lee suggested they consider a fixer-upper. They would have to put some HGTV-style sweat into it, but a government-backed home reno loan would allow Sean and Marie to end up with considerable equity in a home that didn’t cost nearly as much as the amenities would suggest.
Here’s how the deal panned out:
$190,000 – The cost of the home Sean and Marie set their sights on.
$25,000 – The amount Sean and Marie received for home renovations from the FHA’s 203KHUD loan.
$7,862 – The cash Sean and Marie put up front.
$330,000 – The new value of their $190,000 home after the renovations.
Looking for $115,000 in equity from a renovation loan? Lee can help you find the right home at the right price, just like he helped Sean and Marie.
Build Wealth at Home
About Lee: Lee Smith brings 16 years of mortgage industry experience and 10 years of home building and contracting experience to the home-buying equation. Lee has helped thousands of people update their homes. A practical understanding of the renovation process helps clients remove all the fears of financing and renovating. Let Lee help you build your equity fast at a price you can afford.