Can I finance a house that needs repairs? This is probably the second most asked question by many home buyers. Why? Many of the homes available in the marketplace are in need of substantial repairs.
There are many cases homes where the HVAC units may need to be replaced because they have been removed, kitchens have been stripped of cabinets and appliances and even electrical fixtures are also missing.
The options for financing a home in need of repairs will depend if the property is for a … (6 comments)
203k: From a caterpillar to a butterfly - renovation loans
- 05/08/12 04:35 AM
From a caterpillar to a butterfly is the best analogy for the purchase of a home in need of repairs when the home buyer uses one of programs designed to cover these repair costs. There are three programs that may be available depending on the buyer's qualification, they are: FHA 203 (k) Homepath Renovation Loan Homestyle Renovation Loan This loan product allows for the costs of repairs, improvements, appliances, etc. to be built into the financing of the home. Repairs such as: Carpeting Cabinetry Heating/Air Conditioning units Painting Roof repair or replacement Windows Appliances There are some restrictions that should be noted: … (18 comments)
203k: FHA 203(k) Financing – Required Paperwork
- 02/26/12 10:54 PM
In the previous post in this series, we discussed the eligible property types, eligible repair type, ineligible repair types and some general guidelines. Once you have determined this is the best financing method there are a couple of things you should know about the required paperwork. The FHA 203(k) financing program does require more documentation. Getting this right the first time will help expedite the process. Here is what you will need: · Complete borrower credit package · FHA appraisal stating “as is” and “after improved” values on the same appraisal report's · Contractors resume · Contractors business license and … (3 comments)
203k: FHA 203(k) financing – Eligible Properties
- 02/25/12 04:22 AM
One of the most underutilized financing programs available is the FHA 203(k) program for home buyers that want to buy homes in less than perfect condition. The FHA financing programs have allowed many first-time homebuyers over the last two years to achieve their dream of homeownership with its minimal down payment of 3.5% and low interest rates. The FHA 203(k) financing program will include the cost of the repairs into the mortgage financing. The down payment will be calculated based on the acquisition costs plus the cost of the repairs. To qualify for this program the property must be … (2 comments)
FAQ #9 Can I finance a house that needs repairs?
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