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George, Home Buyer in Dallas County, TX

Home Improvement Financing Options

Asked by George, Dallas County, TX Fri Mar 13, 2009

If I were to buy a home , foreclosure or not , can you include the costs of improving the home( like wood floors etc ) or repair, in the mortgage loan or is that a different loan or do you have to finance that by yourself.

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The FHA 203K loan is one way to go but it may cost you inspections and extra fees involved in that loan. Your other option is to apply for a home improvement loan after you close on the house. I've done this before and it it's much less red tape and fees than doing one loan for repairs. This would also give you the freedom to pick and chose what you want done rather than the loan company. And of course the home will have to appraise properly to achieve total value as the Realtor decsribed below.
0 votes Thank Flag Link Fri Mar 13, 2009
Hi George,

An FHA 203k is used more for foreclosure type properties that need major repairs such as foundation work. These properties may be uninsurable without the work being done. This type of loan is complicated and not used very often. There is an FHA 203k S (Simple) that is designed more for cosmetic improvements such as wood floors and paint. My preferred lender also has a Purchase Plus Improvement product that allows you to add improvements up to 25% of the value of the property and you can finance up to 95% of the value of the property as it appraises with the improvements. At this time, this product is limited to a 5 year ARM and you must use a contractor for the improvements. Contact Carroll Dyer, Executive Vice Pres./Loan Officer with ViewPoint Bankers Mortgage for more information. Phone: (972) 304-4604 Email: carroll.dyer@vpbmortgage.com.
0 votes Thank Flag Link Fri Mar 13, 2009
There is a loan for owner occupants called an FHA 203k that gives you the money to buy and rehab a property.

Ask you real estate agent for a good 203k lender.
Web Reference: http://usaloanshome.com
0 votes Thank Flag Link Fri Mar 13, 2009
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