Houses in Grays Harbor are selling as quickly and at the highest prices they ever have.
In our last column, we talked with three different real estate professionals about this red hot market. Houses are on the market an average of just six days and are often being sold for over the asking price!
And even though prices are high, because of super low interest rates, buyers can still get good 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 fixer-upper to live in and homeowner’s homes that need updating.
Special loans needed for fixer-uppers
While investors with cash can buy fixer-uppers, for homebuyers who plan to use a FHA, VA or USDA loan, it’s critical that the home has no major safety or deferred maintenance issues.
When it comes to getting a loan, a house needing new paint, and fresh flooring is one thing, but a house needing foundation work, roof repair or new plumbing may not pass inspection for those loan underwriters.
But even fixer-uppers are selling well now in Grays Harbor.
Kevin Spivey, owner of Spivey Realty Group on the Harbor, says that fixer-uppers are selling at twice what they’ve ever sold before.
Are you, or someone you know, interested in buying a home, but either can’t afford move-in ready or simply prefer a house that needs a little work?
If you are having trouble getting a home to qualify for a loan, we here at NeighborWorks of Grays Harbor may be able to help with that!
As a nonprofit organization, our goal is to promote sustainable home-ownership and safe, energy efficient, affordable housing.
Need a loan for repair?
At NeighborWorks, our revolving loan funds have specific purposes that are attached to specific income levels.
The fund is comprised of restricted capital lending funds that we applied for and were awarded over the last 40 years. The funds originated from several sources in partnerships with our cities, the county and also from our parent corporation, NeighborWorks America.
We loan the money out at “time and interest rates” that are intended to be affordable for the individual homeowner. As the loans are paid back, the money goes back into the Revolving Loan Fund and becomes available for another rehab project – sort of the ultimate recycling project.
A first position rehabilitation loan is intended to make existing owner-occupied homes safer, more livable, more energy efficient, better looking, and more maintenance friendly.
It can be used to fund a first mortgage for first–time home buyers, who intend to live in the home, but also needs funds to fix it up.
In addition to financing the project, we provide construction management oversight to assure a successful outcome.
Yes, we become your expert and advocate in every phase of the project for no more than 10 percent of the rehab cost.
Who is eligible?
Everything here begins in a confidential meeting with our HUD certified housing counselor who will establish your income and qualifications for loans or grants available, including ours.
If your income qualifies and you choose our loan, a site visit and visual inspection of the home is next. This is done by our construction manager to see what your needs and wants are, and to generally estimate the cost to make repairs.
The counselor and the construction manager bring your information to NeighborWorks’ loan committee for a final decision.
If the loan is made, the work to be done is put into a written scope of work and put out to bid. You—the homeowner— selects the winning bid and 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 problems requiring a change order, check permits, make sure the work is completed to specifications, have lien waivers signed and have inspections completed before you sign off on each contractor’s payout request.
As your expert, we are available to make sure every part of your project is complete.
Contractors like working with us
On the flip side, the local contractors like to work with us because they know the written work scope is clear, that we allow change orders for hidden damages and that they will be paid as promised.
Besides you being much happier, we also like the added bonus that your rehab project generates permit fees, involves the purchase of materials and the hiring of local contractors –all helpful to our local economy while enhancing the community at large.
Are you eligible?
Generally, our rehab loan program is available to homeowners in Grays Harbor County who live in their home and need rehabilitation, or who will be living in it. Income is restricted to 50 to 120 percent of the Grays Harbor area median income by family size. Call us for this and more information.
To be eligible at this time, our loans must be in first position. Buying out your existing loan is possible. Homeowners must have a steady income. The loan cannot exceed 100 percent loan to value after rehab value. Open collections will be cleared. Other factors may be used as required by the loan committee to secure the loan.
Do you have questions? E-mail or give us a call and we will get back to you!
Looking for Contractors
We are always looking for quality contractors. Women and minority contractors are encouraged to apply for our bidding pool. We are an equal opportunity organization.
Dave Murnen and Pat Beaty are construction specialists at NeighborWorks of Grays Harbor County, where Murnen is executive director. This is a nonprofit 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 counseling for renters and landlords, homebuyer education and buying, call 360-533-7828, listen to the extension picks that will best help you and leave a callback name and number. Due to Covid-19, our office is not currently open for a visit, but we will call you back.
