Finding the right house with low inventory can be a struggle. However, you should not count out a home that may need a little TLC.
Take advantage of a renovation loan program. Renovations can include updates on appliances, painting, kitchen and/or bathroom remodels, energy efficient improvements, plumbing, roof repairs and more.
FHA 203(k) loans enable home buyers to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the seller's existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed.
- Rather than paying a premium for a home in “perfect” condition, buyers can take advantage of discounted prices available on foreclosures or other homes on the market that are in need of repair or remodeling
- Customers are able to purchase more home for their money and in a more desirable location
- Renovation costs are wrapped into the mortgage, allowing the customer to pay for the improvements over time at a much lower interest rate than conventional alternatives
- A single loan for the purchase and improvement of the home means only one loan application and one set of closing costs – saving both time and money
Keep an eye out for the fixer upper you can make your dream home by taking advantage of an FHA 203(k) loan. To learn more about this type of loan, speak with a GO Mortgage Home Loan Adivsor.