Have you found a Home that is in dire need of repairs and updating? Is the seller refusing to work with you on repairs?

Finally, there is a way to finance distressed homes and roll in the money for repairs!

Bring that diamond-in-the-rough into the 21st century with a new kitchen, updated bathrooms, lavish landscaping, paint, carpet, hardwood floors, chic light fixtures, modern plumbing fixtures, the latest kitchen appliances, energy-efficient windows, elegant granite countertops, a sturdy fence, a new roof, foundation repair, and even room additions.

Frequently Asked Questions:

What is the minimum amount of repairs required on a FHA 203k home improvement loan?

There is a minimum $5,000 requirement of eligible home improvement loan projects on the existing structure of the property. Minor or cosmetic repairs may be included after meeting the first $5,000 worth of repairs.

What are some of the repairs that qualify for the first $5,000?

Structural alterations and reconstruction: (Repair or replacement of structural damage, chimney repair, additions to the structure, installation of additional bath(s), skylights, finished attics and/or basements, repair of termite damage and the treatment against termites)

• Elimination of health and safety hazards.

• Changes for aesthetic appeal:
(New siding, adding a dormer, covered porch, attached garage).

• Air Conditioning or replacement:
(plumbing, heating, air conditioning and electrical systems).

• Installation of well, septic system or connection to public utilities.

• Roofing, Gutter Downspouts, Flooring, Tiling and carpeting.

• Major landscape and site improvement.

• Improvements to improve accessibility and functions for the disabled.

What are the qualifications to be able to obtain a FHA 203-k loan?

The qualifications requirements are the same as a typical FHA mortgage loan

. The only additional item that the borrower needs is either enough cash reserved to pay for materials and labor until they are reimbursed through a draw, or a credit card with an adequate available balance. If there is to be a contractor involved, the contractor may choose to cover these costs.

The interest rate on a typical FHA 203k mortgage loan is a little higher than a standard FHA or conventional 30/15-year fixed-rate loan. The cash requirements are the same as an FHA loan , 3 percent to 5 percent, which is less than a typical conventional loan. There are a couple of additional fees which pertain to the construction aspects of the FHA 203k loan.

Can I pick my own contractor to do the work?

You may decide on your own contractor, and they should be brought into the process in the beginning stage of the loan process. Check out the credentials of the contractor thoroughly, making sure he is knowledgeable in all aspects of rehabilitation work.

The home improvements or repairs need not be made before moving into the property, depending on how extensive the repairs are and whether the house is habitable while the repairs are being made. The home improvement loan provides the ability to include up to 6 months of mortgage payments in the improvement escrow, should you not be able to occupy the property and have to pay rent during rehabilitation.