Friday, January 26, 2018 / by Shane Anderson
Recently I have had people ask me "What if I find a home, but it needs repairs?". There is a loan program out there that allows you to add money to your loan for repairs or additions. For example, you found a home and you want to update the kitchen, or maybe you want to add an extra bedroom to the home. The house is selling for $200,000. This would be a good opportunity to get a 203K Loan. Your loan would be for $200,000 + the cost of the estimated repairs. Once your home goes under contract the next step would be to get a contractor out to the home ASAP and to give you an estimate of how much it would cost to do what you want to do. Let's say the cost will be $30,000. The next step is to have the appraiser look at the house and appraise the home as if the updates were complete. The total amount of the loan would be $230,000.
If you would like more information please let me know. I have lenders that can still get the loan processed within 30 to 45 days. It all depends on how quick we can get the contractors quote to the lender. This is a good opportunity if you find the house that you really like, but...... Now you can take care of the but......... (New Kitchen, Added bedroom, stone front, and so on),