I'm sure many realtors and buyers alike that have walked into a home that has many attractions: Nice neighborhood, lots of acreage, good layout, etc, but the condition is less than desirable & needs lots of work before it's in liveable condition.
In the past you'd usually turn around & say "Next"!
There's now a program available that allows a buyer to purchase a home and make upgrades/repairs to the property & combine everything into one loan.
You can borrow up to $35,000 over the sales price for repairs such as:
§ Repair/Replacement of roofs, gutters and downspouts
§ Repair/Replacement/upgrade of existing HVAC systems
§ Repair/Replacement/upgrade of plumbing and electrical systems
§ Repair/Replacement of flooring
§ Minor remodeling, such as kitchens, which does not involve structural repairs
§ Painting, both exterior and interior
§ Weatherization, including storm windows and doors, insulation, weather stripping, etc.
§ Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
§ Accessibility improvements for persons with disabilities
§ Repair/replace/add exterior decks, patios, porches
§ Window and door replacements and exterior wall re-siding
§ Septic system and/or well repair or replacement
The rehab program is intended for uncomplicated repairs and/or improvements to a home primarily of a cosmetic nature, for which plans, architects, and/or engineers are not required. The following would not be allowed:
§ Major rehabilitation or major remodeling, such as the house to the right :)
§ New construction (including room additions)
§ Repairs requiring detailed drawings or plans
§ Landscaping or similar site amenity improvements
§ Pool improvements/repair
§ Any repair or improvement requiring a work schedule longer than three months, or more than two draws
Obviously there are tons of foreclosures in the US right now & most are in need of at least some repair, from a few hundred to thousands of dollars - This is a great program for those homes. Rates comparable to a standard FHA loan (Low-mid 5’s today) and the rehab loan can be used for a purchase or refinance. The borrower can complete the repairs if they are able to demonstrate the required expertise/experience.
I'd be glad to answer any questions about this product...Feel free to comment or send me an email.
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