Expand your options by searching for homes that could include repairs. This gets put into your mortgage loan with the FHA 203(k) Standard and Steamline loan program. Mortgages for America can help provide the support and expertise to help you close these types of loans more confidently.
Traditional 203k - Can be used for projects higher than $35k and allows structural changes - Does require a HUD Consultant.
Steamline 203k - Can be used for projects lower than $35k. Has to be used for more cosmetic items like roof, flooring, applicances, etc.. - Does NOT require a HUD Consultant.
The 203k rehab loan allows you to hang on to your savings when fixing up a broken-down house. Repairs on a house can be very expensive. If you rely on your savings to get you through, you could run out of money quickly. What is worse, you might not be able to resell the house and then your savings are depleted. With a 203k loan plan you can finance the repairs.
Rehab loans are designed for “fixer-uppers.” Therefore, this loan will allow you to qualify for a home purchase that many other programs would not. You can get a house at a lower price than you normally would be able to on the open market. Once fixed up you should have Instant Equity.