Expert Real Estate Louisville, Kentucky

Attention home buyers!  Are you interested in a fantastic way to take advantage of all of those homes we find in the Louisville, KY real estate market that need minor repairs or updates?  Especially all of the homes that are returning to the market as foreclosures?  Thankfully, the FHA offers a wonderful program designed to help owner-occupants purchase a home that needs renovations.  The program’s formal name is the FHA 203(k) Loan, and the specific version that should most interest typical home buyers it the Streamlined (k) program.

Why is this FHA loan program so special and what benefits can it bring to you as a potential home buyer?  First and foremost, buying a home with an FHA loan usually requires that the home be able to pass an FHA inspection and be in a safe, occupiable condition.  That of course eliminates numerous homes that we find on the market today because many foreclosures have trouble passing an FHA inspection.  With the Streamlined (k) program, the FHA will allow you to purchase a home that needs updating and will actually lend you the money to make the improvements!

Here is a complete list of the repairs the FHA will allow if you utilize the Streamlined (k) Renovation Loan:

• Repair/Replacement of roofs, gutters and downspouts
• Repair/Replacement/upgrade of existing HVAC systems
• Repair/Replacement/upgrade of plumbing and electrical systems
• Repair/Replacement of flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulation, weather stripping, etc.
• Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
• Accessibility improvements for persons with disabilities
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Repair/replace/add exterior decks, patios, porches
• Basement finishing and remodeling, which does not involve structural repairs
• Basement waterproofing
• Window and door replacements
  and exterior wall re-siding
• Septic system and/or well repair or replacement

This is a list of repairs not authorized under the FHA 203(k) Loan program:

• Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall
• New construction (including room additions)
• Repair of structural damage
• Repairs requiring detailed drawings or architectural exhibits
• Landscaping or similar site amenity improvements
• Any repair or improvement requiring a work schedule longer than six (6) months
• Rehabilitation activities that require more than two (2) payments per specialized contractor

In addition to the above requirements, the FHA specifies a cost ceiling of $35,000 for the allowable repairs, plus there are very specific guidelines you must follow regarding property eligibility and borrower qualifications.  You may review the complete requirements for the program here.

If this program sounds like it may interest you or help you buy the home of your dreams, contact me, and let’s sit down and discuss your options.  I would be honored to help!!

This post was inspired by Patricia Dewitt of 5/3rd Bank.  She can be contacted at 502.417.6390.  She would be happy to help you with all of your mortgage needs.  Please let her know where you found her name!

Given the preponderance of negative news about the Louisville, KY real estate market, plus the general sense we are in a buyer’s market, it can place buyers and sellers both at a disadvantage in searching for a home and negotiations.

While it is true we are in an economic downturn, and the housing industry played a role in the situation, the real estate market in Louisville has weathered the storm better than most areas.  With the significant changes to mortgage lending requirements, plus an elevated inventory of homes for sale, Louisville does face long-term challenges and probably several years must pass before a certain stability returns to the real estate market.

Louisville’s real estate market presents a dynamic and potentially confusing challenge to potential buyers.  Thorough market knowledge is the key.  When searching for a new home in one area you may find depressed prices, excessive days on the market, and high rates of foreclosure leading you to take a relaxed approach to buying.  Yet, a few streets over the market is robust, prices are steady or increasing, and the best homes sell in just weeks.  Without adjusting your perceptions and buying strategies you could potentially miss out on the perfect home and become frustrated.

From a seller’s perspective, failing to honestly acknowledging the surrounding market, the condition of the home you are selling, and the location can cause you to overprice the home and fail to sell.  One great reason to use a real estate agent when selling your home is that we visit a huge number of homes all of the time.  We will be able to give you perspective on how your home competes in the marketplace.  If you wish, you should consider actually going to some homes to see how your home compares in person.  It can really help guide you in pricing.

The bottom line is… Louisville is great market to be in compared to many regions of the country presently.  Certainly there are troubles, and certainly the market will continue to correct, but if you take the time to study the market data, employ competent professional guidance, and are prepared to act, both buyers and sellers can take advantage of this market and continue to conduct business.

Potential Investment Property for Sale at 623 S 19th St. Louisville, KY 40203!

No longer listed for sale by Joe Hayden, Realtor.

This home features an open floor plan and all the benefits of living in a two year-old home. The home is in fair condition requiring paint, carpeting, and flooring updates. Currently rented for approximately $850/month, this home could make a nice investment property. Rough in for full bath in the basement.

This home is a short sale, so we encourage you to make an offer. The seller’s lender will negotiate the final sales price.

Marketed for sale by Joe Hayden, Realtor.  Contact him today for additional information or to schedule a private showing.