The FHA Renovation Loan

Many homes on the market today need a few repairs: a new roof, more efficient windows, some paint or other minor work. And in a market with lots of foreclosures in distressed condition, sometimes fixtures and appliances are stripped from the house by the previous owner.

What is a potential home buyer supposed to do in this situation if all they saved up for was their down payment and closing costs?

Enter the FHA Renovation Mortgage. This loan product, created and insured by the Federal Government through HUD is the solution.

And unlike other government programs offered lately, this one has been around for a while and actually works the way it’s supposed to!

It’s pretty much the same as buying a home with a regular FHA loan with the added benefit of of receiving up to $35,000 for basic repairs, fixtures and appliances. And here’s something more — you might even qualify for an additional $8,000 for upgrading to more energy efficient windows.

And guess what… If your existing home needs renovating, you can even use this loan to refinance and get the money to perform the repairs, even if you have only 4% equity in your home.

This loan is not offered by every lender and even the lenders who do offer this product require loan officers to be certified to originate one for you.

If you think this might be the solution you’re looking for, read more about the Renovation Mortgage at HUD’s website or give me a call to discuss how you can qualify.