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FHA 203 (K)
The purchase of a house that needs repair is
often a catch-22 situation, because the bank won't lend the money to
buy the house until the repairs are complete, and the repairs can't
be done until the house has been purchased.
HUD's 203(k) program can help you with this
quagmire and allow you to purchase a property plus include in the
loan the cost of making the repairs and improvements. If a
property cannot be occupied while the repairs are being done, it
allows for up to 6 months mortgage payments to be included. This
program is not available for investors, it is only available to
persons wanting to occupy the home
List of Eligible Repairs:
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Windows
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Roofs
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Siding
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New Bathrooms including Whirlpool baths
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New Kitchens including built in dishwasher,
built in ranges
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Heating and Air Conditioning
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Well and Septic (or hooking up to Public
Utilities)
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Painting
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Carpeting
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Flooring
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Room Additions
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Decks
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You can include up to 6 months mortgage payments (PITI) to
allow time for renovations if the property is not habitable
during repairs and renovations
In other words, any repair or renovation that
increases the value of the property are allowed. Luxury items
that do not become a permanent part of the real property are not
eligible as a cost rehabilitation. All health, safety and
energy conservation items must be addressed prior to completing
general home improvements.
GETTING PRE-APPROVED IS THE SMARTEST MOVE YOU CAN MAKE
Home
sellers won't even entertain an offer from you unless they can confirm that you
will qualify for the financing to purchase their home. In addition,
you need to make sure you know how much you qualify for so you can
avoid wasting time and effort inquiring about homes that are priced
above what the lender determines you can afford. Get pre-qualified.
This will cost you nothing but an hour of your time and there is no
obligation.
The FHA 203(k) and
Conventional Construction Financing are specialized financing
programs that allows you to finance not only the cost to purchase
the property but to also allow you to finance the construction costs
to repair the property. Most agents have no experience in this
type of financing, we do.
Contact me now to schedule an appointment to sit down with me
and a mortgage professional.
One year
from now, you'll be looking back on this as the best decision you've
ever made. There is no obligation.
Be sure to include your name, address, phone
number and time slot for your appointment, or just pick up the phone
and call us to schedule a time most convenient for you.
We look forward to meeting you,
Linda Kerr Iwaniw
Terry Iwaniw
Realtor Associates
Linda: Cell -
609-417-1084
Terry: Cell -
609-417-1086
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