Mortgage with renovations
Mortgage with renovations
I'm interested in a house that is 15-20K, however the house needs extensive renovations, such as electrical, windows, plumbing, an estimated renovation cost of about 30-40K in order to be livable. I'm not familiar with banks stipulations or mortgages.
How would I go about getting a mortgage, as a first time home buyer for a fixer upper home?
Would I go for a regular mortgage of 50-60K, pay the house amount of 15-20K, then use the balance for renovations?
Is there any special type of mortgages for this?
3 Answers
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You'll have to get in touch with a local FHA-approved mortgage lender and find out the eligibility criteria for a HUD 203(k) loan. The loan application approval process for a 203(k) is the same as any other FHA home loan. But, in this case there would be additional requirements which you'll have to fulfill. Otherwise, usual credit check and debt-to-income would apply.
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Where is the property? Is it investment or owner occupied property?