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Spencer for Hire :: Buy Your Home and Fix It Up- All With One Loan

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You finally did it, after all that praying; budgeting and penny pinching you finally have the opportunity to buy your very first house. Off you go looking for your dream home, but do not make the mistake of passing up what many real estate agents call a “fixer-upper” – you know a neglected house on an otherwise nice street, or an older home with lots of charm, but an impossibly ancient kitchen, because you feel cash is tight, and you may worry about whether you can afford the expense of renovation after you have closed your loan.

One option to consider is a home improvement loan. Home improvement loans, such as the FHA 203(k), can make the real estate bargain even more attractive because they allow you to purchase a home, and improve it, ALL with one single loan. The remodeling costs are built into the loan, and the loan amount is based on the “after-improved” value of the home. That’s right the same loan you get to purchase your little fixer-upper will be the same loan that turns your ugly ducking into that beautiful swan. Your home improvement loan may be used to repair that leaking roof, remodel your kitchen (for those big family dinners) or even replace those old drafty windows and that front door. Home improvement loans can even be used for current home owners to make repairs to your current home.

You can purchase your dream home for as little as three percent down, (that is about four thousand five hundred dollars on a home that cost one hundred and fifty thousand dollars to buy) using a home improvement loan and turn your little fixer –upper into the house you dream about when you turn the pages of the home and garden books.

With a 203(k) loan, FHA will waive the usual mortgage insurance premium that is required at closing, thus reducing your out –of- pocket expenses. The program also offers you a variety of fixed or adjustable rate options. So the next time you are flipping through the classifieds or your real estate agent says “what about this one here it just needs a little bit of TLC”, you can smile because you now have the knowledge of knowing that there is a home loan with a home improvement loan out there that will allow you the opportunity to get your dream home and the only major decision you will have to worry about is what color do you want your carpet.

Over the next couple of weeks I will continue to bring to you more information on home loans, financial workshops and ways to help clean up and keep your credit straight. One workshop that is coming real soon and I am proud to be helping develop will be in helping the 5th AME congregations throughout the Inland Empire and Southern California turn renters into home owners. This workshop promises to educate, enlighten and enrich thousands of lives here in the IE as well as other parts of Southern California. So stay tuned and continue to pray, budget and prepare to buy your home and tell your landlord “good-bye” forever.

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