In many markets there is a high amount of competition for homes priced right and move-in ready condition. Buyers and investors have begun to look at homes listed that are "cash only" or require a renovation loan to purchase. Competition can be less and you have the ability to make the home perfect for you.
Two little-known home renovation mortgage programs offer solutions for buyers and homeowners who want to renovate.
Fannie Mae and the Federal Housing Administration have home renovation mortgage programs that allow buyers to borrow based on what the house is expected to be worth after the home rehab is completed. Homeowners can also use both programs to refinance their existing mortgage plus the renovation costs into one loan.
FHA's 203(k) program and Fannie's HomeStyle Renovation Mortgage have been around for years. In the old days -- when most borrowers could easily get second mortgages or generous credit lines to pay for renovations -- these loans weren't as appealing as they are today.
Contact Home Advantage at 1-855-710-7936 or submit the Contact Us form (click) for more information on buying a fixer property.