Home Buying in Minneapolis>Question Details

Cody Anderson, Real Estate Pro in Minneapolis, MN

Can Distressed Properties And FHA Loans Can Go Together?

Asked by Cody Anderson, Minneapolis, MN Tue Oct 9, 2012

If you're a first-time home buyer, a federally insured FHA (Federal Housing Administration) loan might be a good option. The FHA has a program to help you repair a fixer-upper. You can get one loan that combines the mortgage with the repair costs. The amount of the loan is based on the projected value of the property once repairs are made.

FHA loans only require a 3.5 percent down payment – compared to 20 percent with conventional loans – and the down payment can come from an employer, family member or charitable organization. FHA loans also have lower closing costs than conventional mortgages.
Since the federal government insures these loans, you'll get a competitive interest rate and lenders may be willing to give you terms that make it easier to qualify for a loan. If you have less-than-perfect credit, it's easier to obtain an FHA loan than a conventional mortgage. Contact Bill Boldenow at Wells Fargo for more details. https://www.wfhm.com/loans/william-boldenow/

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Cody you should place this in your blog area. Q and A is more for answering consumers questions or asking a question you need an answer for. You have some great info here and as additional questions are asked your question moves down where no one will see it. A blog lives for ever and is searchable.
1 vote Thank Flag Link Tue Oct 9, 2012
I wasn't a hundred percent on where to place this. I did get an email last week about this subject.. so that's why I posted some info :) Thank you for the pleasant heads up
0 votes Thank Flag Link Tue Oct 9, 2012
You could also look at HUD properties which in many cases are already appraised to be sold with FHA financing. In some cases you don't even need to use an FHA 203K loan. If the repairs are estimated under like $5,000 you can just escro for repairs given you are working with the right lender. Search HUD homes at http://www.hudhomestore.com ... this is a government website, not a personal promotion for my own website.
0 votes Thank Flag Link Tue Oct 9, 2012
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