I love that word....Fixer Upper!  What that means is dependent on the person.  One buyer may think replacing the bathroom fixtures is a "fixer-upper" while another buyer sees a collapsed kitchen ceiling from a leaking roof as a "fixer-upper".   Ahhh, I love the diversity of buyers.

 

Buyers can purchase a  home in less-than-ideal condition, make immediate improvements and pay for them over time - all with one loan.  From needed repairs to practical remodels,  renovation loan options can help buyers turn a property with potential into the transformed living space that they envision.  That is the power of  an FHA 203k loan.

 

I have a "fixer-upper" listing and some buyers run away from the idea that their paychecks will all be absorbed into the home for years to come with grueling long term fixes.  Not so!  A renovation loan covers all the costs of minor and major repairs, additions and renovations - plus the purchase price, minus the required down payment.  Renovation financing includes the home plus the repairs - all in one loan.  So they enjoy single loan closing and one monthly payment.

 

Eligible properties include:

Primary residence

Second/vacation homes

Investment properties

 

Loan amounts are based on up to 110% of after-improvement property values (or up to the maximum allowed HUD amount for FHA 203k loans).  And improvements can include anything from basic repairs or upgrades, to more extensive renovation or rehabs.  All work must be completed within six months after closing.  So, that means the buyer can get the job done and start enjoying a renovated home!  With the potential of good equity return.

 

Not all lenders are familiar with FHA 203k loans.  Ask them how many they have done before you select your lender.