Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration’s (FHA) 203(k) rehabilitation program.
• A common misperception about the program is that the house needs to be unlivable. Realistically, the property just needs to be outdated, according to a lender familiar with the program. The property “just has to appraise below market value and then at market value with the repairs.”
• Improvements deemed “luxury” are ineligible; however, the program has a wide range of definitions for “repairs” and “modernization.” Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.
• For additional information about the FHA 203(k) rehabilitation program, please visit HUD 203K INFO
So if you're looking at a good buying opportunity but worried about how to find the money to fix it up, this is a great program for you. Call me with any questions. I have access to 203K approved contractors and lenders for this program. It's worth your time to investigate the possibilities.
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