LOANS FOR FIXER-UPPERS

After last week’s email I received many questions about the FHA Streamlined 203k Limited Repair loan. Here are some basics:

- Must be owner occupied home
- Maximum loan amount (including repair escrow) is $271,050 (in most New Mexico counties)
- Borrower must meet standard FHA credit and debt-to-income ratio guidelines
- No minimum amount for repairs; maximum repair amount is $35,000
- Can be used for purchase or refinance
- Home improvements are limited to those for which plans, engineers or architects are not needed (i.e., cannot be used to add rooms or move load bearing walls) and cannot be used for landscaping
- Can be used for things like roof repairs, upgrades of HVAC, plumbing or electrical systems, kitchen or bathroom remodeling, new flooring or windows, to purchase new appliances, painting, and weatherization
- Work must be completed within 90 days of closing

This is a great program for people who are buying a foreclosed property that is in disrepair or an older home that needs updating. Call me for more information.

Thanks for this summary goes to Heidi Snow, Perennial Mortgage.