Interested in purchasing a superior fixer?
Grays Harbor homes are selling as fast and at the highest prices ever.
In our last column, we spoke with three different real estate professionals about this hot market. Homes are on the market an average of only six days and often sell for above asking price!
And even though the prices are high, due to the extremely low interest rates, buyers can still get great deals for the same monthly payment. It’s a win – win!
This week, as promised, we want to talk a little bit about buying and rehabilitating a building to renovate and owners’ homes in need of renovation.
Special loans needed for repair rods
While investors with cash on hand can purchase repair rods, for buyers who are considering using an FHA, VA, or USDA loan, it is essential that the home does not have major security issues or deferred maintenance.
When it comes to getting a loan, a home that needs new paint and flooring is one thing, but a home that needs foundation work, roof repairs, or new plumbing may not pass inspection for these loan underwriters.
But even repairmen are selling well now in Grays Harbor.
Kevin Spivey, owner of Spivey Realty Group on the Harbor, says repairers are selling twice what they’ve never sold before.
Are you, or someone you know, interested in buying a home but can’t afford to move in or just prefer a home that needs a little work?
If you’re struggling to secure a home to qualify for a loan, we at NeighbourWorks of Grays Harbor may be able to help!
As a non-profit organization, our goal is to promote sustainable home ownership and safe, energy efficient and affordable housing.
Need a loan for repair?
At NeighbourWorks, our revolving loan funds have specific goals that are tied to specific income levels.
The fund is made up of restricted equity loan funds that we have requested and provided over the past 40 years. The funds came from several sources in partnership with our cities, the county and also our parent company, NeighborWorks America.
We lend money at “term and interest rates” which are supposed to be affordable to the individual owner. As the loans are repaid, the money goes back into the revolving loan fund and becomes available for another rehabilitation project – a sort of ultimate recycling project.
A prime location rehabilitation loan aims to make existing owner-occupied homes safer, more livable, more energy efficient, better looking and easier to maintain.
It can be used to finance a first mortgage for first-time home buyers, who intend to live in the home, but also need funds to repair it.
In addition to financing the project, we provide supervision of construction management to ensure a positive outcome.
Yes, we become your expert and your advocate in each phase of the project for up to 10 percent of the cost of rehabilitation.
Who is eligible?
It all starts with a confidential meeting with our HUD Certified Housing Advisor who will establish your income and qualifications for available loans or grants, including ours.
If your income is eligible and you choose our loan, a site visit and visual inspection of the house are as follows. This is done by our construction manager to see what your needs and wants are, and to generally estimate the cost of repairs.
The Advisor and Construction Manager bring your information to the NeighborWorks Loan Committee for a final decision.
If the loan is granted, the work to be done is included in a written scope of work and put in competition. You – the owner – choose the winning bid and the contractor; then everyone signs a written contract and the work begins.
Our job is to oversee the work, help determine solutions and costs to any unforeseen issues requiring a change request, verify permits, ensure work is completed to specification, have waivers signed privilege and to have inspections carried out before signing the payment of each contractor. request.
As an expert, we are available to make sure every part of your project is complete.
Entrepreneurs love to work with us
On the other hand, local contractors like to work with us because they know the scope of the written work is clear, that we allow change orders for hidden damage and that they will be paid as promised.
As well as being much happier, we also love the added bonus that your rehabilitation project generates permit fees, involves purchasing materials, and hiring local contractors – all of which benefit our local economy while improving the community as a whole.
Are you eligible?
Typically, our Rehab Loan Program is available to homeowners in Grays Harbor County who are living in their home and in need of, or will be living in, their home. Income is capped at 50 to 120 percent of the median income in the Grays Harbor area depending on family size. Call us for this and more information.
To be eligible at this time, our loans must be in first position. The repurchase of your existing loan is possible. Homeowners must have a stable income. The loan cannot exceed 100% of the loan value after rehab value. Open collections will be deleted. Other factors can be used as needed by the loan committee to secure the loan.
Do you have any questions? Email or give us a call and we’ll get back to you!
Search for subcontractors
We are always looking for quality contractors. Women and minority entrepreneurs are encouraged to apply for our submission pool. We are an equal opportunities organization.
Dave Murnen and Pat Beaty are construction specialists at NeighborWorks in Grays Harbor County, where Murnen is executive director. It is a non-profit organization committed to creating safe and affordable housing opportunities for all residents of Grays Harbor County. For questions about the ductless heat pump program or home repair, housing advice for tenants and homeowners, education and home buying, call 360-533-7828, listen to the expansion choices that will best help you and leave a name and callback number. Due to Covid-19, our office is currently not open for a visit, but we will call you back.