When you imagine your dream home, it’s not likely that you see roof leaks, broken plumbing, or missing floorboards. However, just because a home needs a little love and care doesn’t mean that you should strike it off your list. In fact, many people are finding that their dream homes can be found right under their noses – and sometimes under outdated wallpaper or damaged kitchen tiles. Fortunately, the federal government has created a loan program specifically aimed at helping consumers purchase “fixer-uppers”. If you’re a home buyer who has said “no” to a few potential homes because of damages you see, here are a few reasons why you need to talk to a lender about a rehab loan:
What Are FHA Rehab Loans?
FHA rehab loans are dispensed to consumers who would like to buy a property that is in serious disrepair. Many people find that they don’t qualify for typical loans for these homes because they have been deemed uninhabitable. Others may decide that they can’t actually afford both the home and the repair costs. In these cases, the FHA may be able to help you with a loan for structural repairs (like adding a room or replacing a roof) as well as non-structural repairs (like painting). In some cases, you can even receive funds to pay the mortgage so that you can live somewhere else while repairs are being made.
The Benefits of A Rehab Loan?
These FHA 203k Rehab Home Loans benefit buyers in the following ways:
1. FHA rehab loans often offer lower interest rates, beating loans that you can get in the traditional marketplace.
2. Rehab loans allow consumers to take advantage of great deals on homes, and you may be able to buy your dream house for less money.
3. An FHA 203k loan can help you be more financially responsible by keeping your own savings in your pocket to help with the move so you don’t find yourself desperate for cash.
If you see the potential in a “fixer-upper”, don’t let that property slip through your fingers because of what you’ll have to spend to repair and remodel it. Instead, contact a loan specialist at Village Mortgage to find out more about FHA 203k Rehab Home Loans and whether you qualify for one. A little financial assistance may turn out to be all you need to turn a drab house into a fabulous one.