We all know that there are a ton of properties for sale in Santa Maria that need a lot of work. These homes make great homes for the first time buyer. The problem is that these homes often are in a condition that would exclude them from FHA or VA financing. Fannie Mae and Freddie Mac, have their own financing that can often times be a great deal to the consumer. Fannie Mae's Home Path Financing does not require an appraisal for example. These loan programs are tailored for first time buyers. A buyer can often obtain a loan with as little as 3% down through homepath. These are great programs. But what if the home needs work? Sometimes, Fannie Mae and Freddie Mac will do work to bring the home up to the condition suitable for FHA. However, FHA has a program called the FHA 203k program. This is an amazing program where a borrower can buy a home with an FHA loan and borrow upto $35,000 for renovations. The value of the home is based on the future renovated value of the home.
Recently, Lowes has partnered with Rebuild USA to offer construction services for the renovation aspect of the 203K loan. At Lowes, they help you determine the scope of work necessary, help you select materials. Lowes installers will go out and measure and determine final pricing. The scope of repairs and pricing is sent to the lender. The loan is closed and the money needed for renovation is held in escrow.
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