The answer, believe it or not, is actually "Yes!" But in order to do it, you're going to need to use the FHA 203k Loan Program. Now this is not giving you an open checkbook to go out and fix up a property in need of help but, it is a way to help you make some necessary repairs without paying for them out of pocket. Here's how it works:
Prior to closing, you will need to have contractors come in and give you bids for how much it will cost to make the needed repairs to your new home. Now your new loan amount will be based upon the sale price of the home plus the amount of money it will take to make the repairs.
After closing, you will have a limited amount of time to get all of the repairs made. Then the property will be re-inspected by the lender and if everything meets their approval, the money to pay for the repairs is then released to the contractors.
There are many HUD owned and bank owned properties that could qualify for the FHA 203k loan program. Right now, the loan limits for FHA loans in the Indianapolis area is $271,050. And best of all, the down payment needed for an FHA loan is only 3% of the purchase price. But if you're thinking about going this direction, you may not want to put it off because this down payment amount will be increased to 3.5% as of January 1, 2009.
Want more info or want to see if you could qualify for this type of loan program? Please contact Jody Bleier at Stonegate Mortgage (317.213.1387) and be sure you tell her you found out about her at iShopGreenwood.com ! Good luck! Thanks for the info Jody!