With so many different homes available on the Hammond real estate market, now is the time to dip your toes into the homeowner pool with a "fixer upper". If you don't mind buying a "diamond in the rough", you may want to consider the FHA program that offers help to buy a home to rehab. The FHA (203) Rehab Program was created to help clean up the rundown homes in a neighborhood while helping homebuyers afford to do so.
Through a conventional home loan, the property must be worth at least what the loan amount is in order to be approved. However, when it comes to a home that needs a bit of work, oftentimes, the property isn't worth that much. This causes the homebuyer to have to secure financing through other means in order to pay for repairs or other construction work needed to fix up their home. These loans tend to be for shorter terms and higher interest rates, decreasing the chances that a buyer can purchase the fixer-upper to begin with.
Through the FHA (203) program, a Hammond homebuyer is able to purchase the home as well as secure financing for repairs and construction in one mortgage loan, with one payment and the lowest interest rates they qualify for. This works out as a win-win for the local housing market, since the properties that were previously considered eyesores can now be bought up by homeowners willing to put the work into them to make them better and more homebuyers are now able to afford their own Hammond home.
To qualify for the FHA (203) Rehab Program, the home in question:
- Can't be larger than a four-family multiplex (single-family, duplex, triplex or quad will qualify)
- Must have been completely finished from initial construction within the last year (no newly constructed homes allowed)
- At least have part of the original foundation left in place on the property (if the rest of the home has been completely demolished)
If you want to purchase a Tangipahoa home, are willing to put a bit of elbow grease into fixing it up and want to have the cost of the mortgage and repairs/remodeling in one payment, this FHA program offers help for buyers who want to purchase a home to rehab. Contact me today so I can help you find the perfect Hammond home for you!