Monday, January 30, 2006

FHA renovation loan program "reconstituted"

Potential good news to the fixer-upper crowd as the Federal Housing Administration (FHA) rolls out its revised 203(k) renovation loan program that allows borrowers to roll the cost of major repairs into mortgages that are based on the "as completed" value of the property. Under a version of the new program, buyers can roll the cost of various repairs into a government-insured mortgage without the need for a second mortgage.

FHA now has no minimum on the amount of repairs that must be done and raised the maximum amount for repairs to $35,000.

2 Comments:

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