Did you know that there's a "Renovation Loan" program offered through Wells Fargo, allowing buyers to finance the purchase and cost of improvements into the loan amount. This program is ideal for the buyers of REO's or short sales where there tends to be a high incidence of deferred maintenance or obsolescence. Examples of allowable repairs include:
- Roofs, gutters, downspouts
- HVAC Systems
- Plumbing, Electrical systems
- Existing flooring
- Minor remodeling
- Interior and Exterior painting/siding
- Weatherization including storm windows, doors, insulation, weather stripping, etc.
- Appliances - free standing and built-ins allowed
- Handicapped Accessibility
- Mold remediation
- Repair/replace exterior patio/porch
- Septic and well systems/repair and replace
- Fencing (no, this is not your "martial arts" training)
There are some "ineligible work items", however.
We are also talking about FHA loans ($442,500) and the maximum renovation cost allowed to borrow is $35,000 and it MUST be a primary residence. I did the math and realize that the cost of using this money, rolled into the mortgage is definitely economical. If you want to discuss further, I would be happy to share what I know and turn you over to the most trusted Wells Fargo Rep I know.
