Mortgages for Storm Damaged Homes in the Beach Haven West Real Estate Market
Mortgages for Storm Damaged Homes in the Beach Haven West Real Estate Market
Hurricane Sandy made landfall in the Southern Ocean County area at the end of October 2012 and caused major damage to the areas of Long Beach Island, Beach Haven West, Little Egg Harbor, Barnegat, Waretown and elsewhere. With so many storm damaged homes in the local real estate markets, there is much to understand about mortgages for storm damaged homes in the Beach Have West real estate market as well as other Southern Ocean County real estate markets.
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Mortgages and Financing for Storm Damaged Homes
A little known fact is that with conventional financing, banks lend money on the structure: not the land. Therefore, if a property has been damaged by Hurricane Sandy and was gutted, it will no longer qualify for traditional financing. The good news is, there are many loan products and Mortgages for Storm Damaged Homes in the Beach Haven West Real Estate Market available to consumers.
- 203k Streamline loan in the Beach Haven West real estate market
- Full 203k in the Beach Haven West real estate market
- Homestyle Renovation Loan in the Beach Haven West real estate market
The type of loan a buyer should seek will depend on what the intended use of the property will be. A primary residence will qualify for 203k financing whereas a second home or investment property will be limited to a Homestyle loan.
A 203k Streamline is the simplest form of financing when seeking Mortgages for Storm Damaged Homes in the Beach Haven West Real Estate Market. A 203k Streamline loan will finance 96.5% of the purchase price of the house and also loan up to $35,000 for non-structural improvements. Non-structure improvements means the money can be used for things like electrical work, plumbing, drywall, insulation, floors, kitchen, bathrooms, etc. This is an excellent and helpful form of financing for the purchase of a storm damaged home in the Beach Haven West real estate market.
If the property was structurally damaged, meaning the foundation needs to be replace, the building needs to be raised or an addition will be put on the house, a full 203k loan is needed. A full 203k involves more work and draw payments similar to a construction loan. A consultant for the bank must evaluate the project and make sure that the finished home will be worth more than the amount the bank is lending. These loans are excellent options for properties that need to be demolished or raised as they offer more money for construction on primary residences in the Beach Haven West real estate market.
Homestyle renovation loans are available for primary homes, secondary homes and investment properties in the Beach Haven West real estate market. Homestyle loans will group the purchase price of the land and the estimated cost of renovation and loan 75% of the either project. These loans carry a slightly higher interest rate but can be worth it for a second home as it allows for the purchase and rehab of a storm damaged home in the Beach Haven West real estate market.
Buying in the Beach Haven West Real Estate Market
If you are considering buying a house in the Beach Haven West real estate market you must have a clear understanding of not only Mortgages for Storm Damaged Homes in the Beach Haven West Real Estate Market but also of the local building codes and of flood insurance in Beach Haven West. I can help you understand each aspect of he purchase of a home in the Beach Haven West real estate market so feel free to call, text or email me with any questions!