Can a new home loan include the cost of initial repair?

A question by I’m looking to buy my first house, and I want to seem reasonably intelligent before I sit down with a mortgage broker. If I am interested in purchasing a home in need of a few, minor repairs, can the cost of repairs be included in the home loan? Or, say: for aesthetic purposes, the lawn needs to be sodded…let’s say…to prevent erosion, etcetera. Can that be included in the loan? Or, do both of those instances fall under the category of home equity loans? Ahhh – here’s an additional question: Just for curiosity’s sake, how long must you own a home before you qualify for a home equity loan? I say pay full price and then ask for cash back at closing for repairs. Let say the house is 100,000 then I would ask for 14,000 back at closing for repair. Works all the time :-) FHA 203 Kb is the answer for rehab and purchase, seek the advice of a good loan broker who does FHA loans.

You can give a better reply? provide a response using the comment section. After review, we will update the answers.

Yes, given that you furnish the lender with renovation estimates, you can obtain a renovation loan in addition to a home loan. After confirming the information, you supplied, the lender will approve the loan amount.

These are some uses for house loans that you may consider

A new house loan is a flexible loan that can be used for any of the following things:

  • purchase of construction property and land
  • The building of a new home
  • buying a house, apartment, or condominium
  • Adding to the current house’s construction
  • Renovations and repairs to the current home
  • Existing home loan customers can apply for a top-up from their current lender and use the additional funds for remodeling or building an addition.

Vaor

NO, NO AND NO. THE LOAN YOU ARE APPLYING FOR IS ONLY FOR THE PURCHASE OF YOUR HOME. IT DOESN’T INCLUDE ANY REPAIRS OR IMPROVEMENTS THAT YOU WANT TO MAKE.

THATS WHY HOUSES FOR SALE HAVE LISTINGS TO SHOW YOU WHAT THE HOUSE LOOKS LIKE AND THAT WHY AN INSPECTION IS ALWAYS DONE.
IF THE LAWN NEEDS TO BE SODDED OR IF YOU FIND ANY OTHER REPAIRS THAT NEED TO BE DONE. YOUR BROKER IS THE ONE THAT SHOULD NEGOTIATE THIS FIXES BEFORE ESCROW CLOSES. IT COULD BE NEGOTIATED TO THE POINT THAT THE SELLER COMES DOWN ON THE ASKING PRICE AND IF NOT, THEY SHOULD BE FIXED BEFORE ESCROW CAN CLOSED
AS FOR YOUR OTHER QUESTION, IS MANDATORY THAT YOU WAIT AT LEAST 6 MONTHS REGARDLESS WHETHER YOU EARNED EQUITY OR NOT.

Anonymous

What you’re looking for is what’s called an FHA Title One loan which is for home repair. Some items like a pool, for example, cannot used with this loan. They offer varying loan amounts with very little cost. In some cities you can also obtain Community Improvement Loans (and sometimes Grants which are only paid off if you sell or transfer title within 10 years). Insofar as how long you have to wait before obtaining a Home Equity Loan (or Line), some companies offer loans the day after you close your purchase for up to 125% of your purchase price. With this loan, there are associated costs which are higher than the Title I, but they have no constraints for use of the proceeds.

Anonymous

What you’re looking for is what’s called an FHA Title One loan which is for home repair. Some items like a pool, for example, cannot used with this loan. They offer varying loan amounts with very little cost. In some cities you can also obtain Community Improvement Loans (and sometimes Grants which are only paid off if you sell or transfer title within 10 years). Insofar as how long you have to wait before obtaining a Home Equity Loan (or Line), some companies offer loans the day after you close your purchase for up to 125% of your purchase price. With this loan, there are associated costs which are higher than the Title I, but they have no constraints for use of the proceeds.

Anonymous

By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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