Are you looking for ways to save money on your next home purchase? Consider buying a property that requires repairs. While you won’t be able to move in right away, this option could open the door to unique financing options that make it easier for you to purchase your next property.
Unique Financing Options
One of the best options available is an FHA 203(k) rehab loan. This convenient option allows you to finance both the purchase price of the property and the price of any repairs you want to do. You don’t have to worry about taking out multiple loans, and you might be able to qualify for a lower interest rate. Bundling everything together can save you a significant amount of money.
Types of FHA 203(k) Loans
When considering an FHA 203(k) loan, think about which type you want. The standard loan is great if you have lengthy, expensive repairs because it doesn’t have a maximum amount of money you’re allowed to spend on the repairs themselves. It’s ideal if you need to rehab the garage, modernize the bathrooms, or remove health and safety hazards. The streamline loan allows you to tap into your funds quickly and easily. You can finance repairs up to $35,000, and it’s ideal if you have to replace the HVAC system or work on the plumbing.
Remember that while purchasing a house that requires repairs can save you money on the purchase price, it’s important to think carefully about how you finance the project and how much money you plan on spending on repairs.