I wanted to take a couple of minutes and let you know about two great programs out there if you purchase a home and it needs some work. The first of these is the FHA 203-k loan and it allows you to buy a home, fix it up and roll the costs of construction (there are limits-be sure to check with me or another loan officer before proceeding) into the loan. The FHA 203-k loan is a great loan for those of you who aren’t afraid to buy a fixer. Understand that FHA loans are for owner occupied homes only so you need to live there. But I know people who have done these loans and been able to not only get a great buy but fix their place up nicely. In sum, the FHA 203-k loan can be a great way to go; especially if you don’t have the cash to do the repairs yourself or only 3.5% to put down on your purchase.

The second loan program is the Fannie Mae Homepath Renovation loan. I’m pleased that The Legacy Group is able to offer this product as not all lenders are. The Fannie Mae Homepath Renovation loan is very similar to the FHA 203-k loan mentioned above. The difference is the Fannie Mae Homepath Renovation loan is for Fannie Mae owned homes only. With so many homes being foreclosed upon these days, there are also quite a few that are owned by Fannie Mae. If a home is owned by Fannie Mae, the only loan program that might be available is the Homepath one (especially if you put less than 20% down). In sum, thanks for reading about these two great renovation loans. You may not have been aware of them before this but you are now!