CENTURY 21: The Gold Standard
Are there govít programs for rehab?

HUD's Rehabilitation Loan Program, Section 203(K) is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.

The 203(K) loan is usually done as a combination loan to purchase a fixer-upper property "as is" and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan. Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs. At this time, only select lenders are participating. For a lender list, call HUD at (202) 708-2 720.

Other sources include:

  1. VA loans can be used to buy a home, build a home, improve a home or to refinance an existing loan. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility (complete Form 26- 1880). Call the VA regional office at 1-800-827-1000for more information.
  2. Title 1 FHA loans are also available.

Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value.

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