Say you’re shopping for a new home, and you keep finding houses that are almost perfect. Maybe the carpets are  old and need replacing; maybe the paint is starting to peel; maybe you need a handicap ramp installed; maybe the furnace is just a little too old. Maybe you’re checking out the REO or foreclosure and short sale markets and thinking that most of those homes need some work before you’d be happy in one of them.

Those problems don’t have to be deal breakers. A 203(k) Renovation Loan can help you take care of those problems and turn a house that’s almost perfect into the home that’s just right for you! With a 203(k) loan, you can borrow money for repairs and upgrades in addition to your loan for the home itself, all bundled together so you only pay one set of closing costs and make only one payment each month for your financing.

HRM offers two types of 203(k) loans: the Streamline Renovation loan and the Standard Renovation loan. Below are details on both:

Streamline Renovation Loan Program Benefits: Total rehabilitation costs up to $35,000 Down payment as low as 3.5% Family members may pay all of the borrower’s required down payment, closing costs, prepaid expenses and discount points PLUS No HUD Consultation necessary No contractor approval necessary Some examples of allowed renovations are: New roof Remodel kitchen or bath Room addition New HVAC Upgrade electrical or plumbing systems New carpet or paint Install hardwood floors Purchase of new appliances Repair insect or weather damage Replace windows Finish basement

Standard Renovation Loan Program Benefits: No limit on repair amount; $5,000 minimum Inspection fees for up to five draws are included in the loan amount Single-family homes, PUDs and 2-4 unit primary residences are eligible HUD Cost Consultant fee may be rolled into the mortgage Mortgage payments for up to six months may be included if the property is not habitable during renovation Some examples of allowed renovations are: Structural alterations or reconstruction New roof Remodel kitchen or bath Room addition New HVAC Upgrade electrical or plumbing systems New carpet or paint Improve landscaping Install hardwood floors Purchase and installation of new appliances Repair or replacement of structural damage Replace windows Finish basement Energy conservation improvements Major landscape work and site improvement

These loans are especially great for FHA properties, older homes and homes bought on short sale or at foreclosure — but any home can benefit from some remodeling or cosmetic fixes, to make it your own. I can explain the details of the program and provide you with guidelines to stick to while you look at houses with your real estate agent, making it easier for you to find a home that will qualify. Let’s talk about your goals, your budget and whether a 203(k) can help you get into a new home faster!