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Financing a Fixer-Upper?
By Deborah Colanino
You just love the house! Except for the leaky pipes or maybe the kitchen is too small. For the house that’s almost perfect, we have the perfect solution: Our Renovation Mortgage, a mortgage and home improvement loan all in one.
It’s called a 203(k) loan and is a FHA insured loan that allows buyers to purchase or refinance a home and include money for renovations and/or repairs into the same mortgage loan. The repairs can be either required or optional repairs. A 203(k) loan can also be used to remodel a home to the buyer’s liking.
For example, a $200,000 FHA fixed loan with 3.5% down, 5.000% interest rate, 5.616 % APR, and 0 points would require monthly principle and interest payments of $1,074.00 for 30 years and $92.00 a month for Mortgage Insurance. Taxes and insurance are extra.
Some of the allowed repairs include a remodel of the kitchen or baths, a new roof, upgrading to central heat/air or adding a garage, porch, deck, or patio -- even landscaping. You can also put in new flooring, paint the house or add siding, plus much more!
This program offers the unique features that make FHA loans excellent financing solutions in today’s market. We offer flexible credit qualifying when you purchase or refinance a single family, or a multi-family (owner occupied only) with a 3.5% down payment.
As a Real Estate and Mortgage professional for over 25 years, I have seen the market roller coaster more than once. What I have not seen, however, is a better time to be a first time buyer or to renovate and repair a home.
Equal Housing Lender. Prospect Mortgage is located at 15301 Ventura Blvd., Suite D300, Sherman Oaks, CA 91403. Prospect Mortgage, LLC (Unique Identifier #3296) is a Delaware limited liability company. MA Mortgage Lender/Broker License #MC2011. This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company-underwriting guidelines. Information and pricing are subject to change at any time and without notice. This is not an offer to enter into a rate lock agreement under MN law, or any other applicable law.
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