Introduction to Home Buying on Florida’s Gulf Coast
Late last year, Elizabeth King and Brody Touchet embarked on two life-changing projects at once: a wedding in Guatemala, and their first home purchase in Florida.
Background and Career
Ms. King was born in Guatemala, where her American father met her Guatemalan mother while serving as a missionary. They eventually ran an orphanage there. “I had a fun childhood with like 15, 16 kids around me at all times,” said Ms. King, 31. The family moved up to Sarasota, Fla., when she was 9.
Finding Love and a New Career Path
Two decades later she was still in Sarasota, the small Gulf Coast city about 60 miles south of Tampa, when she met Brody Touchet on a dating website. He was living 75 miles down the coast in Fort Myers. Before long, Mr. Touchet moved to Sarasota to be closer to Ms. King, and he began working at her father’s residential construction business. Around the same time, Ms. King, an architect, started a new job designing high-end custom cabinets.
Decision to Buy a Home
Life was moving fast as the couple prepared for their November nuptials, and they decided it was time to invest for the future. “We needed a tax write-off, so we were like, ‘Let’s buy property,’” said Mr. Touchet, 33.
Budget and Location Preferences
With a budget of around $500,000 and a plan to spend up to $150,000 on renovations, the couple wanted a house near downtown Sarasota, which offers a variety of museums and performing arts venues (and, as the longtime home of Ringling Bros. and Barnum & Bailey Circus, calls itself the “circus capital of the world”).
Investment vs. Long-Term Home
Thinking of it as an investment, Mr. Touchet was aiming for a home they could flip. Ms. King was thinking longer term, figuring that any big renovation would be broken up into phases.
Prioritizing Location
“My theory was if I’m living here in Sarasota, I want to live close to what the city has to offer,” she said. “I wanted to be less than 15 minutes from downtown and not spend my life driving.”
Finding the Right Loan Program
The couple contacted Andrew Haddad, a Sarasota-based broker with Compass, who suggested applying for the Federal Housing Administration’s 203(k) program. It insures mortgages covering the purchase and rehabilitation of a home, with a down payment requirement of just 3.5 percent.
Benefits of the FHA 203(k) Program
“The FHA 203(k) loan lets you turn a fixer-upper into your dream home,” Mr. Haddad said. “It’s the key to building equity from day one.”
The Home Search
With their wedding just weeks away, the couple began hunting for a house they could rebuild into something that might or might not be their “forever home.”
Conclusion
The couple’s journey to find their starter home in Florida’s Gulf Coast is a testament to the challenges and opportunities of buying a home in a competitive market. With the right loan program and a clear vision, they were able to embark on a new chapter in their lives.
FAQs
Q: What is the FHA 203(k) program?
A: The FHA 203(k) program is a loan program that insures mortgages covering the purchase and rehabilitation of a home, with a down payment requirement of just 3.5 percent.
Q: What were the couple’s budget and renovation plans?
A: The couple had a budget of around $500,000 and planned to spend up to $150,000 on renovations.
Q: Why did the couple want to live near downtown Sarasota?
A: The couple wanted to live near downtown Sarasota because of its variety of museums, performing arts venues, and proximity to the city’s amenities.
