| The
U.S. Department of Housing and Urban Development's Section 203 (K)
rehabilitation loan program is designed to facilitate major structural
rehabilitation of houses with one to four units that are more than one
year old. Condominiums are not eligible.
The 203(K) loan is usually done as a combination loan to purchase a
fixer-upper property "as is" and rehabilitate it, or to
refinance a temporary loan to buy the property and do the
rehabilitation. It can also be done as a rehabilitation-only loan.
Plans and specifications for the proposed work must be submitted for
architectural review and cost estimation. Mortgage proceeds are advanced
periodically during the rehabilitation period to finance the
construction costs.
For a list of participating lenders, call HUD at (202) 708-2720.
If you are a veteran, loans from the U.S. Department of Veterans
Affairs also can be used to buy a home, build a home, improve a home or
to refinance an existing loan. VA loans frequently offer lower interest
rates than ordinarily available with other kinds of loans. To qualify
for a loan, the first step is to apply for a Certificate of Eligibility.
Another program is the Fedeal Housing Administration's Title 1 FHA
loan program.
Resources:
* "Rehab a Home With HUD's 203(K)" brochure, U.S. Department
of Housing and Urban Development, 7th and D streets S.W., Washington, DC
20410.
|