I normally do not write about financing matters but I learned this week about a financing program that can change to some extent how people may look at a house or condo that needs work. The FHA along with Wells Fargo are offering a streamlined 203 (K) renovation financing plan. Here are several key components:
- Loan amounts up to 110% of the home's appraised value; renovation amounts up to $35,000
- This money can be used for plumbing, windows,doors insulation or septic work
- It can not be used to remove or add walls
- The loan amount is based on the value of your home after the work is done
- Easier guidelines make this process fast and easy
- If you use an FHA approved contractor, they pay the bills and only after you signed off that the work has been
I believe that this enables a buyer to look at a house that needs work. With this plan the necessary improvements are planned and financed with a contractor ready to start as soon as the closing is over. The contractor is on a fixed fee contract, motivated to finish on time and on budget!
Couple this with an $8,000 first time homeowners tax credit
Contact me and I will put you in the hands of a lender who knows this program
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