Are you considering a “fixer-upper” for your new home? Wanting to build some quick equity? Well, there is good news for you – many lenders are now offering programs that allow you to finance the expected cost of those renovations into your home loan!
This program is known as a 203K loan – and has lots of perks:
The renovation/repair loan will cover the price of the home PLUS the cost of the renovations and/or repairs – with your loan amount being based on the anticipated value of the property after improvements. These loans are available in amounts up to 110% of the home’s appraised value – designed to finance those projects that can be completed quickly.
The amount of the anticipated repairs/rehabilitation of the home is held in an interest bearing escrow account and you are given two disbursements – one at closing of the property and one after the repairs are made.
Renovations can be items that are required to be repaired in order to bring the home up to code or improvements meant to update a property.
So before you cross the perfect home for your family today – that somehow, hasn’t left the 50s, 60s, 70s, or 80s – give this program a second thought – you will be glad you did!
Sioux Falls, SD
- No documents for download.