There are tons of great properties on the market in the Triangle these days! What happens if you are interested in a property but it needs foundation repair or a new HVAC system or an updated kitchen and you only have enough money saved for a down payment? The solution very well could be an FHA 203(k) loan.
If you, as a borrower qualify for an FHA loan, you most likely would qualify for a 203(k) loan. This enables you to finance both the purchase of the home and the cost of repairs or improvements in one mortgage.
Loan amounts can vary from a low of $60,000 up to $271,050 (depending on the county you live). You must have intentions to live in the home as your primary residence.
There are consultant fees involved with these types of loans and they vary depending on the amount of repairs.
One great feature about this type of loan is that if repairs are extensive and you are not able to reside in the home during the renovation period, you can roll in up to 6 months of payments into the new loan.
As work is being done, there can be up to 5 draws for payment of contractors.
When you are looking for your next new home, look beyond those “issues” and know that you have options to make that fixer upper a gorgeous dream home!
Karyl Smith is a Senior Mortgage Planner with America Select Mortgage, Inc. in Raleigh, North Carolina. She lends across the state of North Carolina and is a government loan expert. Contact her at 919-522-8884.