Fix-Up Homes With Special Financing from HUD

Are you considering purchasing a home that needs some repairs or updates?  Some buyers shy away from "Fixer Uppers" because their finances are tapped out after buying a home and there is no money left over for repairs.  Here in Greensboro, NC we have helped several homebuyers take advantage of a special loan program from the Department of Housing and Urban Development (HUD).  We found this is a great program for foreclosures and short sales.

Under traditional loans, the lender provides permanent funds based on the appraised value.  When the property needs significant repairs or modernization, the appraised value is negatively impacted.  The lender will usually either issue a loan for the value of the home before repairs or require that the repairs be made prior to closing the loan.  Under the section 203(k) program, qualified buyers are able to obtain loans to cover the costs of the home and the improvements.  The amount of the loan is set at the projected appraised value after the improvements.

There are certain requirements that must be met but it is definitely worth a look if you are considering purchasing a home that needs some help.

  • March 04 2010 - Greensboro
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