Financing Options for Renovations

[Calle Frees]

Hi all - as a first time home buyer who is looking to purchase a fixer upper - what are financing options to fund the renovation itself? 

[Paul Welden]

Originally posted by @Da'Shawn Murphy:

Yes and the good thing about 203K loan as Landon mentioned is that the renovation cost is wrapped into the home loan. This makes it easier to pay on because it's just one total loan. They have two options though between streamlined (repairs up to $35,000) and the full (projects over $35,000), so you would just have to figure out your repair cost.

The Streamline 203k no longer exists ... HUD eliminated it in September 2015 and replaced with the Limited 203k that has different rules/guidelines. One of the great things about the Limited 203k, there is a provision that allows you to go up to $50k in rehab money!

The Standard 203k is for any rehab over $5k ... not the $35k you mentioned.

Reference HUD SFH 4000.1

Hope this helps!