An FHA home improvement loan is a great option if you’re considering buying a fixer-upper, renovating it to make it your own, and increasing the property value for future resale. This type of loan is called the FHA 203K loan. Basically, it provides you with a loan toward your home purchase, as well as a loan to put toward renovating the property.
What Types of Properties Qualify for an FHA home Improvement Loan?
Remodeled homes typically don’t qualify for FHA 203K loans, but rather fixer-upper homes that need some work in order to increase their market value and make them more move-in ready. In order for a property to qualify for this type of loan, the Federal Housing Administration (FHA) needs to be able to see that a home would instantly become more valuable if it were remodeled. Here are some examples of a properties that would qualify for an FHA home improvement loan:
- A home that has ugly, extremely outdated kitchen and bathrooms
- A home that has fallen into disrepair and has damaged drywall or holes in the ceiling or walls.
- A property that has dirty, old carpeting or scratched up walls that desperately need new paint.
Read Part 2 of this blog series that describes how an FHA home improvement loan works.
Are you a home buyer who’s looking for a great deal on a home in Northern Virginia, and you’re open to properties that need some work? I work with a lot of investors clients, so I’m good at finding great deals. Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com for a list of the top 5 foreclosures or bank owned properties in the area of your choice!