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:
any type of required structural repairs will disqualify the property.
addition of new rooms
In this lending climate, not all buyers have cash to pay for a home that needs repairs. It is a catch 22 situation. There are some great deals on homes at very low costs, however, in the current condition will not qualify for financing.
For more information on these programs, please feel free to give me a call.
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