Purchasing a home in need of repairs might seem like an illogical choice. This is not necessarily the case, however. Home improvement grants are available for purchasing a new home in need of repairs or fixing up the home where you currently reside. Low-interest home renovation grants and loans are available to help you buy your preferred home and pay for its necessary repairs without spending more than you can afford.
FHA 203K loans, also referred to as either Rehab Loans or FHA Construction Loans, are excellent options for people looking to purchase fixer-upper properties. These types of loans are also great choices for homeowners looking to refinance, upgrade or repair issues in their current homes. Continue reading to learn more about how FHA 203K loans help you simultaneously purchase and repair your new home.
When your current or potential new home needs repairs but cannot afford the costs, an FHA 203K loan might provide the financial solution you need. These loans help you purchase or refinance a home, while simultaneously helping pay for the costs of needed repairs. Funds generated from these multi-purpose loans are usable to pay for:
- Purchasing a new home.
- Refinancing your current home.
- Repairing or improving your current or new home.
Renovations permitted using FHA 203K loan funds include significant alterations to your landscaping and other changes to the interior or exterior aesthetics and overall quality of your home. Such aesthetic changes also include the removal of unused or defunct portions of the home, whether due to space issues, structure damage, outdated wiring or more.
In fact, any improvements proposed to remove health or safety hazards are also approved when using FHA 203K loan funds. These loans also help you remodel or restructure part of your home to accommodate people with disabilities and replace old or damaged plumbing.
Energy-efficiency improvements, modernizing various elements of your home and replacing old or damaged flooring, roofing and gutters is also approved.
If your home was damaged or destroyed in a natural disaster, other financial options might be available to you. A government home improvement grant might be available through the Federal Emergency Management Agency (FEMA) to repair damages to your home incurred after a serious flood, tornado, hurricane or blizzard.
To qualify for a FEMA home improvement or repair loan you must reside in a county already declared a natural disaster area by your state and the federal government. If you are in this situation, contact FEMA right away to explore your options.
HUD housing assistance through the U.S. Department of Housing and Urban Development is also available for qualified first-time homebuyers. Even if you have previously owned a home you might still qualify. Contact HUD to understand your options today. The Section 504 Home Repair program provides home mortgage loans to low-income homeowners for the repair, improvement or modernization of their homes.
This program also provides grants to low-income elderly homeowners for the purpose of removing safety and/or health hazards. Finally, the Database of State Incentives for Renewable & Efficiency (DSIRE) offers grants and rebates through state-run programs to help pay for the construction of green or energy-efficient homes. Consult the dsireusa.org website for more information on these funding opportunities.
If you are not looking to build your own house but still need funds to pay for improvement and repair expenses, your best bet might be to apply for an FHA 203K loan. These loans help you reach your joint home purchase and improvement goals without placing extra financial burden upon you. Continue reading to learn if a 203K loan is the right choice for you.
