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WHAT PROGRAMS ARE AVAILBLE TO HELP YOU FIX UP YOUR HOUSE AFTER PURCHASE

  • December 31 2010 - Belleville
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Answers (4)

Actually Frank is partially right 203K is a good way to go however depending on the total dollar amount of the loan(up to $30,000) you will get 50% of the repair funds at closing and the other half at the completion of the job. If you need over $30,000 in repair you will not get a check to start the repairs. instead you will have to take it in draws as the project progresses. There are a few guidelines that you should keep in mind .
1) The value of the home has to be able to support the new loan amount after the improvements are made.
2) Your contractor has to be licsensed and insured.
3) On repairs over $30,000 there are only a few things that you can't do. (put in hot tub)
4) On repairs under $30,000 you cannot do any major renovation such as add rooms, or move walls.

There is also another program available from Fannie Mae that has some of the same rules but there may be a cost savings in going this route.

Good Luck
Greg Migacz
  • February 28 2011
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FHA 203k loan will allow you to refinance and get cash out to repair your home. Please note that FHA will not advance you money for the contractor to start the job. So you need to have cash to gie the contractor to start the job upfront or the conractor needs to have some cash in the bank so that he can buy the materials until the work is completed and then he can get paid off of the draw schedule from the mortgage lender.  FHA does this to protect the borrower and themselves from contractors taking money indvance of the work and then never completing the work. Please note that thier are more fee involved in obtaining a FHA 203k loan vs a traditional conventional loan or a FHA loan
  • February 17 2011
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Some counties in Illinois have programs for home rehab. For example, Dupage county has the "Single family rehabilitation program". They offer either A) a 3% simple interest loan up to $24,000 to do some repairs (windows, doors, siding, roof) or B) a loan that does not have to be paid back until you sell the home and offers the same amount of money to you. There are some restrictions to the program but seems like a pretty good deal. I would check with your counties human services or building department and see if they have any programs like this in place.

Good luck
  • January 14 2011
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The best option you would have is a FHA 203K rennovation loan.  This would finance the renovation as long as it adds value to the home.  It also keeps your contractor accountable by not allowing him or her to be paid until the work is done correctly and inspected.

Hope this helps!

  • January 13 2011
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