Having Trouble Finding a Great Home Because They All Need Repairs? Roll The Repair Cost into your Mortgage
It's been said that if you can find a home that has most of what you want, you should go ahead and purchase it. Many first-time buyers are using everything they have for a down payment and closing costs and would have to "live" with the less than perfect home until they can save the money to make the changes.
The FHA 203(k) mortgage allows a borrower to purchase a home and provides additional funds for improvements to be made. These types of renovations can include kitchen and bathroom remodels, flooring, plumbing, heating and air conditioning systems, additions and other things.
The benefit to the buyer is that they have the opportunity to consider a home that needs repairs and might have been unacceptable without a program like this. Being a FHA loan, a minimal down payment is required, fair interest rates and generous qualifying requirements.
The 203(k) Streamline can be used for cosmetic improvements, appliances and minor remodeling up to $35,000 in cost.
As you can imagine, this is a specialized program and not all lenders choose to make 203(k) loans. They usually take longer to process and getting firm bids on the work to be done will be required. It is important to find out how much experience a lender has with this particular type of loan.
It will also be required that you work with a 203(k) consultant in addition to the mortgage officer.
For more information, go to Hud.gov. FNMA has a similar conventional loan program called HomeStyle Mortgage. As your real estate professional, I will be able to help with recommendations. Call me at (859) 509-8008 today and let's get started!
Lexington Ky is always #1 in my book! Whether you want to buy a downtown condo, a custom walkout ranch on a golf course, or a horse farm in the country, I can help find the perfect home for you – as well as help you sell your home. In addition to Lexington Real Estate, I specialize in the nearby towns of Paris, Midway, Georgetown, Winchester, Nicholasville and Versailles.