As the nation's housing stock ages, many resale homes require upgrades or renovation immediately upon purchase. Traditional mortgage financing limits the loan amount on the current appraised value of the home, less the required down payment. This leaves the cost of any renovation to be financed outside the mortgage loan. Under federal lending guidelines for Renovation Mortgage Loans, home buyers can include the cost of upgrades and renovations in their first mortgage.
In her presentation to Keller Williams Realtors,
Repairs must be fixed to the property and add appraised value. Conventional renovation loans allow luxury items, so long as they fit all other criteria, and may be included in a Renovation Loan mortgage.
FHA borrowers can also utilize this process. Called a FHA 203K Renovation Loan, these mortgages require a 3.5% down payment and have a maximum loan amount of
Read the full story at http://www.prweb.com/releases/corifusselman/movementmortgage/prweb12131504.htm
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