We are buying a foreclosure for cash that needs rehab. Are there any gvmt loan programs just for repair? We will not be living there, will be a rent.

Asked by Jbh06751, 06790 Tue Dec 27, 2011

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Myke Atwater, Agent, Santa Rosa Beach, FL
Tue Dec 27, 2011
Hello,

Fannie Mae has a "homepath" loan program for rehabing a property, and there is a 203K loan program as well. Check on the Fannie Mae website and also call a lender to see who does rehab loans--there are not very many banks that do this, and the interest rate and closing costs are significantly higher and more complicated--you have to have contractor bids signed and ready to go prior to closing--no money for do it yourself projects.

Hope this helps,

Myke Triebold, GRI, SFR, LMC
850-305-6256
MykeSaysSold@aol.com
http://www.DestinHomeRealtor.com
Web Reference:  http://www.MykeTriebold.com
1 vote
Ron Thomas, Agent, Fresno, CA
Tue Dec 27, 2011
So don't pay Cash for the whole purchase price;
keep some of the cash for maintenance, other investments, etc.
Look for a HOMEPATH RENOVATION loan;
it works for investors, (non-owner/occ.)
and the loan will allow up to $35,000 for repairs.
This way you will have a bunch of tax deductions and money still in your pocket.

Good luck and may God bless
0 votes
Bob Brubaker, Agent, Lake Worth, FL
Tue Dec 27, 2011
J- I didn't hear you say the property you are buying is owned by Fannie Mae, You
can only use Homepath Mortgage programs to finance the purchase of one of
their REO properties!
If you hav'nt selected a property yet , buying a Fannie Mae property offers
advantages like Homepath funding and appraisals in place. Any way you do it:
Go visit http://www.homepath.com Best of Luck!

BOB BRUBAKER HIGHLIGHT REALTY PALM BEACH COUNTY FL. 561-876-6649
Web Reference:  http://pbc-realcam.com
0 votes
Jbh06751, Home Buyer, 06790
Tue Dec 27, 2011
We're in CT, not Florida (although we own property there too).
I found a couple of local lenders who offer Homepath to non owner occupying investors so will probably go that route.
Thank you all for taking the time to reply. Your advice has pointed me down the right road.
0 votes
marc jablon, Agent, Boca Raton, FL
Tue Dec 27, 2011
If you are buying single family residential investment property in South Florida, government loans may be hard to come by.

Do you own any other properties under a corporate name? If so, and you're are buying more for the purposes of investment, you might look into an SBA loan. Usually these loans are devoted to businesses, however business with real estate attached often qualify. Whether real estate alone as the business will fit the guidelines may be up to the lender. You best bet is to check with a lender who specializes in SBA loans.

Short of that, you will be best off with a 203-K or Homepath loan that allows for investment real estate in South Florida.

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
Web Reference:  http://www.JablonTeam.com
0 votes
Bob Brubaker, Agent, Lake Worth, FL
Tue Dec 27, 2011
J- There are limitations on the use of both HUD 203 K and Homepath
for financing investment properties ! While both these programs are
excellent "tools", both are designed for loans to owner -occupant borrowers !

You may want to cosider a three step approach to this in the alternative. Buy for cash, Look
for "cash-out " financing, Use loan proceeds to make your "re-hab" ! Look for a lender
that is oriented to both Commercial and Residential Finance. They should see a way.!

Best of Luck! BOB BRUBAKER HIGHLIGHT REALTY PALM BEACH COUNTY FL. 561-876-6649
Web Reference:  http://pbc-realcam.com
0 votes
Joshua Leret…, Mortgage Broker Or Lender, Lakeland, FL
Tue Dec 27, 2011
So, you are looking for free government money to rehab your investment property? That may be a little difficult. The only loans you can get if the property is in bad shape would be the 203k or homepath no free money.
0 votes
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