If you have found the home of your dreams in your dream location but it is not in the best condition, don’t let the work ahead stop you from realizing your dream! The government has created programs to help people buy homes that need a little TLC without having to pay a lot of money out of pocket to make the repairs.
Here in Springfield, Ozark, Nixa Missouri and the rest of our surrounding communities there are many homes that would be perfect for this type of loan. Rehab loans tie in the costs of repair for that home into the loan into one easy low payment. That way you get a great deal on a home and have the funds to bring that home back to life. Not only can you renovate, but you can build and add on to your own specific ideas. After the housing bubble burst a few years ago, an unfortunate side effect was the amount of foreclosures that happened. As a result of houses being abandoned, the banks neglected to make needed upkeep repairs, and in some cases, former occupants intentionally damaged their homes in retaliation. This resulted in a lot of homes on the market that are in less than perfect condition. With so many of these homes available and people just not interested because of the work required, something had to be done. This is when the government created the FHA 203K or rehab loan to make it easier and less expensive for people to renovate damaged homes. The way the rehab loan works is that you don’t need to use your savings to fix up the damage of that home. Paying a contractor after you’ve put down payment for many people just isn’t possible, and home improvement loans can come with a high interest rate. When you tie in the cost of the home improvement into the loan not only do you get one easy monthly payment, but those rehab costs are at a far lower rate and you don’t have to worry about draining your savings. Most of these homes are already well below the costs of other homes in the neighborhood, so the difference that the improvement ads to the home will be well worth it. First you’ll be able to customize your home in your own way instead of what’s already there, plus the changes will raise the value of your property and make you proud to own your new home.
You can also use this program if you already own a home. You can refinance with an FHA 203K and it will tie the costs of upgrading your home into your current mortgage. The real estate market was hit hard, but this program is helping to get the market back to where it should be. Don’t let these record low home prices and rates pass you by. Even if you’ve seen homes that aren’t in the best shape, know there is a great program like the FHA 203K or rehab loans that can help you build your dream home out of it.