Consumers interested in a fixer-upper don't have to walk away because they believe they can't afford to repair or renovate the home, anymore.
The Repair and Restore home loan program is an FHA (Government)
This is a fantastic program for anyone searching for an affordable home, but especially for first time home buyers, as the down payment can be a little as 3.5 percent of the total acquisition cost. The loan program, as with all loan programs, has specific criteria for when and how it can be used.
Repair and Restore is commonly chosen for homes requiring non structural repairs and refurbishments with a financing limit of $35,000. All repairs must be done by an authorized contractor and must begin within 30 days of closing. One of the qualifications of this loan program is that the property must be your primary home and either a single family home, 2-4 unit property, townhouse, a condo needing repair internally only, row houses, or HUD Single Unit Reposssed properties.
The repair financing portion of the loan can be used in a variety of ways. Some of the repairs available include: replacement or repair of roofs, gutters and downspouts, existing heating and cooling systems, plumbing and electrical, interior and exterior painting, weatherization (storm windows, doors, insulation and weather stripping), septic systems and/or well repair or replacement, waterproofing basements, window and door replacements, and more.
Additionally, one of the great value adds allowed under the loan program is that your clients can use the initial funds to purchase and install new appliances!
As with many programs, there are improvements that are not allowed under this program such as major remodeling/structural improvements, new room addition/construction, repairs for structural damage, landscaping improvements, or any repair/improvements that take over two months.
Don't let having to fix up a house deter you from creating the home of your dreams.
Poli Mortgage Group, Inc.
NMLS # 1979