Ross Milroy, Broker

Ross is an entrepreneurial professional with twenty years of diversified experience in residential and commercial real estate, sales and marketing, consulting and finance. He has specific experience in transaction and advisory services, sales management, securing equity and debt financing, developing business processes and infrastructure, as well as real estate asset management. Ross has resided in the Miami Beach area for the past seven years and has been an active licensed Florida Real Estate Broker since 1999. He is an active member of the Miami Beach community and has been a Big Brother and mentor to his “little” Angelo for the past three years.

Contact Ross Milroy

Office Phone: 305.673.5300
Mobile: 305.788.1220
Email: rossmilroy@gmail.com
Fax: 305.576.8306

Need a Rehab Loan? The FHA 203(k)..

Have you recently walked into a showing with your buyer only to discover that the home had significant damage and needed major repairs? This is not uncommon scenario here in South Florida real estate. The FHA 203k Rehab loan is an under-utilized government insured loan that may be the answer for you.

The FHA established the 203k Rehab loan program in the mid 1990’s to help homeowners rehab their existing home OR help interested home buyers purchase a fixer-upper and rehab the property without having to take out a second mortgage, which are no longer an option for 99% of all borrowers. HUD’s 203k program enables you to purchase the property plus make the necessary repairs and improvements in one mortgage.

Once you have situated your fixer-upper, the basic steps in this loan process are as follows:

• In the contract state that you are seeking a 203k loan and that the loan approval is contingent on additional repairs required by the FHA or the lender.
• Select an approved FHA 203k lender who will arrange for a detailed proposal of the work to be completed, including a cost estimate for the project.
• An appraisal will be performed based on the value of the property following renovation.
• If the loan is approved, the loan will close for an amount that will cover the purchase of the property, olus the rehab costs and allowable closing costs. The loan amount will also include a contingency reserve up to 20% of the total remodelling costs not included in the proposal.
• At closing, the seller of the property is paid off and the remaining funds are put in an escrow account to pay for the repairs during the rehab period.
• Mortgage payments and remodeling begin after the loan closes. However, you may also be entitled to have up to six months of PITI (principal, interest, taxes and insurance) put into the cost of the rehab if you are not going to occupy the property during the renovation.
• Through a series of draw requests during the remodelling project, escrowed funds are released to the contractor to complete the work. To ensure completion of the project, 10% of each draw is withheld and is paid after the lender verifies that their will be no liens on the property.
• If all the escrowed funds are not used to complete the project, the remaining funds can be applied to the outstanding principal of the loan.

The downpayment requirement for owner occupied homes is approximately 3.5% of the purchase and repairs costs of the property. The FHA 203k Rehab loan is an excellent tool to help those looking to get deals closed on short sale or foreclosed properties that were vandalized or stripped by previous owners.

For more information or assistance in buying a fixer-upper in Miami, please do not hesistate to email us at info@miamiangelproperties.com or call us at 305.673.5300.