Q:
Are there gov't programs for rehab?
A: The U.S. Department of Housing
and Urban Development's Section 203 (K) rehabilitation loan program
is designed to facilitate major structural rehabilitation of houses
with one to four units that are more than one year old. Condominiums
are not eligible.
The 203(K) loan is usually done as a combination loan to purchase
a fixer-upper property "as is" and rehabilitate it, or
to refinance a temporary loan to buy the property and do the rehabilitation.
It can also be done as a rehabilitation-only loan.
Plans and specifications for the proposed
work must be submitted for architectural review and cost estimation.
Mortgage proceeds are advanced periodically during the rehabilitation
period to finance the construction costs.
For a list of participating lenders, call
HUD at (202) 708-2720.
If you are a veteran, loans from the U.S.
Department of Veterans Affairs also can be used to buy a home,
build a home, improve a home or to refinance an existing loan.
VA loans frequently offer lower interest rates than ordinarily
available with other kinds of loans. To qualify for a loan, the
first step is to apply for a Certificate of Eligibility.
Another program is the Fedeal Housing Administration's
Title 1 FHA loan program.
Resources:
* "Rehab a Home With HUD's 203(K)" brochure, U.S. Department
of Housing and Urban Development, 7th and D streets S.W., Washington,
DC 20410.
