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Dear TZ - I found a great house but it needs a lot of work. Can a 203k help me?

By
Real Estate Agent with Remax First Realty II 0790808

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?Old House

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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~ Wayne & Jean 

Union County, NJ - a great place to live and work!

If you're looking to buy or sell a property in Union County, call us at 908-917-4189 or email TeamZuhl@gmail.com.

 

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All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers' clients. We cooperate with them fully. 

Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

203k loan program is a great program for buyers of homes that need work. Thanks for the post.

Apr 12, 2012 09:37 PM