You CAN Afford That Fixer!
Have you been searching for a home that has everything (or almost everything) that you want, only to find that it needs way too much work to meet your standards or needs? Are you one of the many folks who found what they were looking for, only to find out that many of the details either didn't work or need major overhaul, and the resultant repair/replacement cost suddenly took the house out of your budget?
Well, take heart! There IS a way to buy the home, get the repairs done and not break the bank. It's an unfortunately not publicized enough mortgage program called the FHA 203K loan. What this is, is a combination of purchase loan and repair loan, all rolled into one transaction. The basic way it works is you make your offer for the home and, while in escrow, do your inspections and get bids for the necessary repairs from your contractor(s). You then include those bids with your application to your lender, specifically citing the 203K program. If your transaction meets the limits of the FHA's program (including max loan of $729,000 and a 3.5% down payment), you may end up getting your home and the repairs paid for from your mortgage loan. Check with your lender or mortgage broker to verify that your specific situation qualifies. In the event that your purchase is a higher Dollar figure that FHA regs allow, Wells Fargo also has a similar program for such situations. However, you will have to have a larger down payment as part of the qualifications. If any questions in this case, call your local Wells Fargo Home Mortgage consultant. Another source of these Wells loans, as well as the 203K's is Mortgage Services Professionals. The folks at MSP are experienced mortgage experts and can be reached at the following numbers: Adam Wise: (415) 297-9473 or David Grose: (415) 359-4025.
Good luck and enjoy that home!