If you are purchasing a home that needs renovation and repairs you could consider applying for one of these 2 mortgages so that you can include repair costs into the mortgage:
Fannie Mae Home Style Home Style Loan – This loan allows you to buy a place that needs repairs or refinance your existing home in order to pay for repairs.
· The home must be your primary residence.
· You must have a credit score of at least 620.
· You have to at least make a 5% down payment.
· A certified contractor must prepare a detailed estimate explaining work details and cost.
Using this loan you only have to take out 1 loan instead of taking out one to buy the house and another to make repairs.
FHA 203K loan:
This loan has a lower credit score requirement and requires less of a down payment (3.5%). This loan also allows you to apply the cost of the home and the cost of repairs into one home loan. Many lenders will not approve a home that needs major repairs and this loan addresses that problem.
Ashmore Home Improvement is licensed and insured and will provide you with the necessary documents to submit to your lender to include your repairs in with your home mortgage. Call us today so that we can make your imperfect home, perfect!