So You've Found A Fixer-Upper
by Pam Simpson
The Kudzu Vine
You're so excited to get a GREAT deal in a GREAT neighborhood but there's a catch. It's a "handyman special"...a "fixer-upper"...it needs "TLC". And everyone is telling you there is no way you will be able to get a loan on it.
Well, hold on there. There is a loan made specifically for this situation - the FHA streamline 203(k). The Streamline 203(k) permits the buyer/borrower to finance up to an additional $35,000 into the mortgage loan to improve or upgrade the home.
Do the shingles look suspect? Does it have green shag carpeting with a funny smell? Have all the appliances been taken out? If the repairs to be made are not structural, the FHA Streamline 203(k) is worth looking into.
This loan is available through FHA approved mortgage lenders nationwide. The down-payment requirement is currently 3% of the loan amount, but is expected to increase to 3.5% after the first of the year (2009). In Mississippi, as well as a few other states, owner-occupant buyers may be able to purchase a HUD home utilizing this loan with only a $100 down-payment. For more information on HUD's special $100 down-payment initiative, see Buy A HUD Home - $100 Down Payment.
If you think this loan may be just what you need in order to grab that great deal, please select a lender and REALTOR who are experienced with these loans. There's a little bit more work involved, but it could be well worth it to get that home you've always wanted.
About the author:
Copyright© 2008 By Pam Simpson, All Rights Reserved...**So You've Found A Fixer-Upper**
About the author:Pam Simpson is a Broker-Associate with Bob Leigh & Associates, LLC in Northwest Mississippi.
Disclaimer: All information provided by this author is based on information collected from several sources and is believed accurate but not guaranteed.