Renovation and Rehabilitation Loans
Renovation loans give homebuyers more options when looking for a place to call home. Loans of this kind enable borrowers to purchase a “fixer-upper” and do the repairs or renovations immediately after closing. Renovation of rehabilitation loans become more popular in a low inventory situation. If you have been house hunting and can’t find a place that is affordable and move in ready broadening your search to include properties that need a little TLC could create additional options.
Renovation loans may pay for structural repairs, cosmetic renovations and other improvements. Structural repairs could include work to make the home habitable such as plumbing and electrical updates or even adding a room. Cosmetic renovations could include replacing outdated kitchen cabinets or replacing a roof.
If you are interested in learning more about this program you need to work with an FHA 203K lender, such as Mortgage Equity Partners, who can provide details on the plan guidelines.