Dear TZ,
After a long time of searching, I finally found the perfect house. But it needs a new kitchen and new windows and some more work that I won't be able to afford the repairs. Can I borrow more money than the house is worth to help pay for the repairs?
Fixer-Upper Fred
Dear Fred,
The simple answer is yes, you can. You'll need to find a Renovation Loan Specialist who can help you out. Here in NJ they will do an appraisal on the property and determine what the value will be based on the repairs. Once a value has been determined above the sale price, you'll have X amount of funds to use towards the renovations. All the work must be done by a state certified contractor. You submit the bills to the bank and they will pay the contractor.
203K loans can really make a huge difference for the homeowner. With many foreclosures being vandalized, a 203K loan is the ideal tool to buy a home and be able to fix it up to bring it back to market level.
These loans are also available for investors but at a higher interest rate. Either for yourself or an investment a 203K loan can be a great tool to get you your dream home at a great price!
Good luck!
- TZ
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