It is with a heavy heart and mixed emotions that I bring you, dear readers this news...There is a very slim chance that we'll be selling the Chez..... We sorta put an offer on a house and we're waiting for the sellers to come to their senses and agree to it.....
In the meantime, we gotta figure out how in the heck you sell a house that's mid project....we were totally down in the dumps about the prospects of selling such a 'unique' property. We figured that real estate investors with their all cash offers would be our only option until we learned about this newish HUD loan called a 203k.
The 203K Loan
I just learned about it but it seems to be just the ticket for our situation.
Its a government backed loan where you get to roll the cost of the house, the cost to fix up the house AND the first six months of the mortgage payments into the loan and being an FHA loan they only require a 3.5% down payment.
Here's a good article from sfgate that explains it better than I can.
Here's a link to the HUD website that also explains the 203k program.
Here's a link to the HUD website where you can search for a local lender experienced with the 203k loan process.
The 203k is an FHA loan so there is some additional hoops the buyer has to jump through of course.
I spoke to several different local 203k loan experts and I got the best vibe from this guy.
Luis C. Munoz
Renovation Loan Specialist
Mason-McDuffie Mortgage Corp
6472 Moraga Ave
Oakland, CA 94611
1 510 825-0300 Cell
1 866 958-1869 E-Fax
This is not an endorsement exactly, but Luis offered to make a house call to help me figure out how to best sell this place through the 203k program and I thought that was going above and beyond. If after reading the info above you are seriously interested in the 203k program I suggest you call Luis as he's local, knows the market, and seemed very knowledgeable on the subject. Tell Luis, Chez Neumansky sent you.
Why the 203k Program Seems So Great
Its a program for moderate income folks, to give them a chance to move to a house/neighborhood that they couldn't afford otherwise.
With this loan, you only have to come up with the 3.5% down payment and then when the first mortgage payment is due after the first six months, you rent out the bottom 1000sq ft apartment. That's gotta take a decent bite outta the mortgage no?
You get a 2000sq ft 3bed 2 bath house to live in and a 1000sq ft apartment to help pay your expenses.
Its a super-cool interesting looking house.
Its in a good neighborhood 4 houses down from Little John park.
It's in the Franklin school district.
Its a legal 3000sq ft triplex. You can keep it as a triplex, or, do what we were going to do and turn the top 2 floors into a single family home and rent out the bottom floor apartment, or, turn the entire place into a giant 3000sq ft single family residence.
The foundation-slab-earthquake retro-fitting are already done!
Electrical service upgrade to 200amps with 100amp sub-panels on each floor.
Upgraded the gas service also and re-piped the gas lines.
And on, and on, and on, really, just be prepared to kill several hours and read this blog.
If you know of anyone who wants to do the 'move to Alameda and restore an old Victorian and raise their kids in a safe environment with good schools' thing, please, please forward this post to them. They have to qualify for the FHA loan remember.
I know a bunch of Alameda based Realtors read this blog.
C'mon, I bet you have a couple of clients who might be interested in the Chez. Forward em this post. Its a win-win, we get to sell the house AND if we buy a new place I don't have any need to keep doing my real estate reviews that you love so much, I'm talking about you Alain Pinel Realty.
What's it Going to Cost?
That's the question on every bodies minds isn't it.....
Short answer...we don't have any idea yet....
We do know it will be priced lower than what we paid for it in March '07 AND it will be literally several hundred thousand dollars less than we have into the place....HURRAY!!!
If you are interested in knowing more.
Please email the Madscientist at the link provided on the blog.
Remember the house is not for sale at this time!
We are just trying to gauge interest with this posting.