Purchasing A House That Requires Repairs: What To Know

Hey there, it’s Darren Lum from my mortgage blog website. If you’re considering purchasing a new home, you might be looking for ways to save money on the purchase price. One option that might come to mind is buying a property that requires repairs. However, before you make a decision, it’s important to consider a few things.

Firstly, keep in mind that you won’t be able to move into a property that needs repairs right away. This means you’ll need to have a place to stay while the repairs are being done. On the other hand, this option could open up unique financing options that could make it easier for you to purchase the property.

One of the best options available is an FHA 203(k) rehab loan. This type of loan allows you to finance both the purchase price of the property and the cost of any repairs you want to do. This means you won’t have to worry about taking out multiple loans and you might even qualify for a lower interest rate.

It’s important to note that there are two types of FHA 203(k) loans: the standard loan and the streamline loan. The standard loan is a great option if you have lengthy, expensive repairs as there is no maximum amount of money you’re allo

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