Good morning Brian,
What you want to do is get a referral to a Local Mortgage Banker and Prequalify for an FHA 203k Renovation loan. This mortgage program will help you accomplish exactly what you wish for this home purchase.
This miracle program allows a Buyer to purchase a home and obtain the monies for repairs or home improvements all rolled into a single loan with a SINGLE monthly FIXED RATE payment. The repairs can cost as little as $5,000 or can run as high as necessary to fully gut-renovate a home.
The limit on the repair monies included in the loan is the Loan-To-Value (LTV) Limit based on statutory FHA Loan Limits in your area (see below). And this LTV percentage is calculated based on the value of the house AFTER improvements.
The 203k program even has a provision allowing the Buyer to request that up to 6 months worth of mortgage payments be included in the loan so they donâ€™t have to pay two monthly housing
expensesâ€”rent and mortgageâ€”while the house is under construction.
203k Interest rates run higher than market, but this is still an ideal program to help Buyers achieve their goals of homeownership while simultaneously updating or renovating a home for the lowest possible cost.
Highlights of the 203k Program:
â€¢Buyer can obtain the cash needed to conduct improvements on a home
â€¢purchase folded into the same mortgage loan needed to purchase the house.
â€¢Borrower must qualify according to regular FHA Underwriting criteria with regards to Income, Assets and Credit.
â€¢The Program is only open to Owner-Occupants; no investors permitted. BUT you do NOT have to be a First-Time Homebuyer.
â€¢No Income Limits; no minimum income requirements. No geographic limitations, with the exception that the property is here in the good olâ€™ USA!
â€¢Purchase + Improvements = ONE Mortgage and ONE Monthly Payment
There you have a good fundamental look at the miracle program known as FHA 203k.