FHA 203K Loans Minneapolis First Time Home Buyers

Want to build a lot of equity with a little bit of cash? Are you a first time home buyer in Minneapolis? If so, you should think about qualifying for a FHA 203K loan. With this loan program you can buy the house with a 3% down payment and finance the fix up cost of the property into the mortgage. Isn’t that great? For example, say you want to buy a duplex. You are going to live in one side and rent out the other side. You and two of your friends are going to live on one side and you’re going to rent to three people on the other side. But to do this, you need to finish the basements for both units, update the plumbing, electrical, refinish the hardwood floors and put a beautiful fresh coat of paint on the walls. To do all of this you need $25,000. Say you buy the house for a good deal because it is a foreclosure. You buy it for $150,000. With a 203K loan you can get financing for $175,000 and use $25,000 of it to fix up the place. When all is said and done your payment with taxes and insurance is around $1500. But you rent each room out for $500 because it is a really nice place and market rents are around $600, but you’re giving them a deal. Your gross rent is $2500 and your payments are $1500. You’re living for free and you’re making $1000 a month. Plus you just added $75,000-100,000 in equity to your duplex. Wow! You did this all with only $5100 cash out of pocket. What a deal. If you’re interested in doing this give me a call. I can help you find a good deal on a house in Minneapolis. Call Arne at 612-423-0202.