If you are a first time home buyer or know some one who is, here is a loan option if you are interested in purchasing a fixer upper.
The FHA Streamline 203k Renovation Loan allows you to finance up to $35,000 in repairs and remodeling costs into the mortgage.
The Renovation loan is great for first time buyers who want to buy a nice starter home and don’t want to use their savings and credit cards to fix it up. Let’s say you find a home. It looks great from the street, but the thirty year old kitchen and the shag carpet isn’t your style. Not a problem. The FHA Streamline 203k Renovation Loan will let you borrow the money to purchase the home and pay for renovations. More than likely, the fixer upper will be priced lower than a home in the same neighborhood that has been updated. If your Realtor can negotiate a good price, the completed renovations could add equity that would not exist if you purchased an updated home.
Some Advantages of FHA Streamline 203k Renovation Loan are:
- Must have minimum $5,000 repairs and remodeling costs and the maximum renovations are $35,000.
- Loans can go up to 110% of the after-improved appraised value!
- There is no 203(k) consultant involved. Repairs are usually based on contractor bids.
- Seller can pay up to 6% of the purchase price in closing costs
Use your Streamline loan to make any of these repairs:
- Remodel-update bathroom and kitchen
- Repair-replace floors
- Upgrade roof, gutters, and downspouts
- Fix existing HVAC systems
- Update plumbing and electrical systems
- Paint-interior and exterior
- Weatherization-insulation, weather stripping, etc.
- Replacement Windows and Doors
- Upgrade appliances which may include ranges, refrigerators, washers/dryers, dishwashers, and microwaves.
- Rehab-replace decks, patios, and porches
- Basement finishing, remodeling, waterproofing which does not require structural repairs.
- Improve accessibility for disabled persons
There is also a regular FHA 203K Renovation Loan for renovations that exceed $35,000.
Visit www.LIVING504.com to connect with Realtors to help you find a fixer upper.