As a first time home buyer, you may think you’ve only got a handful of financing options to choose from when selecting your first property. However, there are actually several options to choose
Could A Renovation Loan Get You Into Your Dream House
House hunters in Denver know all too well the woes of high home prices and low inventory. Even with a slight uptick in inventory, it’s still tough out there for buyers. One option buyers might consider is an FHA 203(k) rehab loan, also referred to as a renovation loan, which allows homebuyers to finance both the purchase of a home as well as the renovation costs through a single mortgage.
By allowing the buyer to finance the cost of improvements into the purchase or refinance of a home, home rehab loans can help take the financial guesswork and frustration out of renovating a home.
If you plan to purchase a fixer-upper an FHA 203(k) loan may be the perfect solution for you. In addition to a low down payment of 3.5%, the eligibility terms of an FHA 203(k) loan are more flexible. Other general eligibility and loan features include:
Have at least a 620 FICO.
Do not need to be a first-time homebuyer in order to be eligible.
If your renovation is extensive and you cannot live in the home during construction, you may be able to finance up to six months of mortgage payments during renovations if the home is deemed uninhabitable by the HUD Consultant.
Although some restrictions and special rules apply, 203(k) loans can be used to purchase and refurbish condos, two-to-four unit properties, and mixed-use properties, in addition to single-family residences and homes in planned unit developments.
There are lots of homes in Denver that require a little TLC, and a renovation loan is a great way not only to break into homeownership but possibly find the home of your dreams! Contact Me Today – we specialize in distressed property sales and would love to help you start the process!
DAVE NELSON, 4-time 5280 Magazine 5 Star Real Estate Professional. Dave’s career in real estate has chronicled more than 15 years. Known as a true real estate professional, Dave is experienced i....
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