Finance Repairs into Home Purchase

If one is looking to purchase a home in need of repair, there are several options currently available in which one can finance home repair costs into the purchase of a property. The most notable are the FHA 203k and Streamlined K, as well as Fannie Mae's Homestyle and EasyFix Products. We will take a look at some of the features of these products over the next few paragraphs.

The FHA 203k and Streamlined K are only for primary, owner-occupied properties. The Fannie Mae Homestyle and EasyFix allow for Investment Properties of 1 and 2 units at reduced LTV's. Fannie mae's Homestyle and EasyFix allow for second homes as well.

The FHA Streamline K allows for repairs of up to 35k to be financed into the purchase of a home with only a 3% down payment. This is a great way to finance minor upgrades and cosmetic repairs into a home purchase.

Fannie Mae's Easy Fix allows for up to 25k of financed repairs into a home purchase with only a 5% down payment. This is a great way to finance home repairs into a home purchase with loan amounts up to the conforming limit of 417k.

The Streamline K is a great way to finance upgrades such as a new furnace, replace flooring, and for upgrades of the HVAC systems. The Streamline K does not allow for major remodeling, however.

» DISCLAIMER: The information contained in this article on 'Finance Repairs into Home Purchase' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.