Are there special loans for Springfield Mo fixer-uppers and Springfield Real Estate?
If you are purchasing Springfield Mo real estate and need a loan to buy and remodel it, there are programs available. Check out the U.S. Department of Housing and Urban Development's Section 203(K) loan program. It is designed for major structural rehabilitation for houses with one to four units that are more than one year old.
A 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.
- One of the requirements include the owner-occupant to put up to 5% down. For investors, the requirement is 15% down. Housing and Urban Development (HUD) requires at least $5000 be spent for improvements.
- Another requirement - two appraisals.
- Buyers must submit plans and specifications for the proposed work for architectural review and cost estimation.
Money for repairs are paid in advance periodically during construction to finance the constructions costs.