Renovation Loans are they worth the time and effort?

Right now, we are hearing more about the FHA 203k renovation loans. What are these loans good for and why are they being used more and more?

We are finding that these are becoming more popular with buyers for fix up homes that will not meet the general standards of a typical home due to needing repairs. These repairs are usually items such as needing a new roof, air conditioner, plumbing issues or flooring.

The normal FHA loan would require all of the above to be in useable condition before approving a loan on the home but with a 203k fix up loan the buyer can get a loan that includes funds to fix the home to meet the FHA loan standards.

Why is this being type of loan being used? I believe it's the low prices we are seeing on homes across the "Valley of the Sun". Buyers are realizing that it's not just the investors that can get a good deal on a bank owned fix up home.

With careful planning of repair costs and matericals it's possible to get a good deal on a home and have it in newly remodeled condition upon move-in. If you need further information contact us and we'd be glad to help.