Posted on: 09th Jun, 2009 11:50 am
Iam thinking of buying the house next door to me, and wondering if I can get a loan for buying and also fixing it, it does need minor work and I would need additional money for fixong, will lenders do that?
It is a lot of paperwork but you can file for a 203k which will allow you to go over the loan amount for the necessary repairs. The money will be in escrow and paid out to the contractors as the work is done, so estimates on the work need to be done. It is an arduous process, but definitely doable if you qualify. Not many lenders will take this on due to the amount of paperwork involved but you shop around and you shouldn't have too much trouble finding a company to help you out.
Jesse is correct the 203K is an excellent fha option as long as you are qualified. the house needs to be owner occupied and your other mortgage cannot be a FHA mortgage unless you meet 4 certain criteria you can only have one FHA mortgage at a time. I don't think you will have much difficulty finding someone who will do a 203K depending on where your property is located. brian
as for the inquiry here...you didn't specify, but i surmise that you plan to make this purchase and rehab not for owner occupancy, but for investment. you'll not find any 203k loans available for investment properties.
