Question Details

First Time H…, Home Buyer in Suwanee, GA

What to buy my first house but only got approved for a 90,000 loan. I have found a fixer upper but I don't

Asked by First Time Home Buyer, Suwanee, GA Tue Jan 29, 2008

know how to get the money to fix it up. Seen a house for 38,700 and let me tell it needs work badly. Could I get the loan for like 85,000 to fix up the house or does the whole loan amount have to go the house?

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Hi First Time HomeBuyer,

There is an FHA loan that allows the borrower to get one loan to acquire and rehab a property. This is, as Naima identified, the FHA 203K loan. A determination of the $$$ allocation for the rehab is made and those monies are set aside in an escrow account. As repairs are made to the property, funds are approved for release from the escrow account.

This link will take you directly to the official site of HUD which administers these loans.

Best of luck

An 203K FHA loan is funded through lenders who are approved to write these types of loans.
1 vote Thank Flag Link Tue Jan 29, 2008
Deborah Madey, Real Estate Pro in Brick, NJ
John, are you referring to FHA 203K?
0 votes Thank Flag Link Tue Jan 29, 2008
Fannie Mae has a Renovation Program. How it works is the appraiser does a "subject to appraisal" stating what the house will be worth upon completion. You can get money to buy & fix it up. IThe house can't be a real mess though. There are other guidelines for the program. Feel free to contact me for more info.
0 votes Thank Flag Link Tue Jan 29, 2008
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