When a house isn't pretty, some buyers will stay away, leading to a lower price.
However, if you have the vision to see what it can be, you can take advantage of their reticence.
Any updates you make must add value to the home, points out Make certain the contract states that the purchase is contingent upon you getting approved for an FHA 203(k) mortgage loan.
Contact an FHA-approved lender of your choice to apply.
The cost of remodeling your house can vary greatly depending on what you need to have done.
If a house simply needs to have new paint and bathroom and kitchen touchups, the cost might run ,000 to ,000.
For either type of 203(k) loan, the total amount you can borrow must fall within the FHA mortgage limit for the county and state where the home you are buying is located.
Complete a loan application and submit the required documentation.
The limited 203(k) mortgage is for minor remodeling projects that don't require structural modifications such as adding rooms.
A lender will request a purchase contract for the house you are buying, your credit report, a list of your debts and proof of income to determine if you qualify for a loan.
Show that you have the funds to make the required down payment.
Your dream transformation for a Victorian may not match with the historic neighborhood plan approved by the architectural committee.
Renovators must also consider the practical aspects of the plan.