Fixer Upper Home Loans
Do you love the idea of buying a junky house with tons of potential? Are you handy or have an eye for renovating? Do you watch too much HGTV?
I'm sure most of us answered yes to at least one of these (most likely the last one). But with fixer uppers come some financing issues. One could be that you have enough for a down payment and monthly payments, but you don't have the cash to pay for renovations. Another could be that you simply can't get financing on a home because its condition is too bad.
What to do? Get a 203K mortgage, that's what. The Federal Housing Administration (FHA) provides home improvement loans, which lend homeowners and homebuyers the cash needed to renovate or rehabilitate a home.
The minimum required loan amount is $5,000, and that initial amount comes with a set of requirements as to what the money can be used for. Basically, it's for structural and functional uses, not merely cosmetic uses. Although cosmetic items can be added once the minimun $5,000 is met.
The requirements for borrowers are the same as for any FHA loan. The down payment is low, 3%-5%, but the rate is a little higher than for a standard FHA or conventional loan.
These are very accessible loans, so get out there and find your diamond in the rough.
For detailed information on the 203K program, click here.