Financing the Fixer-Upper

Posted by Jackie Ginley on Tuesday, September 5th, 2017 at 8:21am.

It's a great old house in the perfect location - walking distance to the lake, good schools and an oversized grassy yard. The price is right, but from plumbing to the roof, it needs a total overhaul. What do you do? Most buyers walk at that stage. Some see opportunity. Location is everything in real estate, and a fixer-upper in a good neighborhood is usually well worth the investment in upgrades. But buyers on a budget often don't have a pile of cash on hand for a costly remodel. One solution is the FHA 203(k) loan that rolls the cost of a remodel and the purchase of a home into one loan with as little as 3.5% down.

Owners and non-profits with decent income and good credit can qualify, but not investors. The remodel must cost at least $5,000 (and up to the FHA maximum for your area), and the project can involve anything from minor repairs to a major remodel. Work must be performed by a licensed contractor and completed within 6 months.

Please feel free to Contact me for help in finding the perfect fixer.

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