How to Buy a Fixer Upper - Blown Mortgage Learn More At: slideshare.blownmortgage.com Lender Hotline: 888-581-5008 If you cannot afford a home that is ready to move into or you would rather buy a home that needs a little loving and do the work yourself, you will need a loan that provides the funds to do so. This is not a readily accessible type of loan, but the FHA offers the opportunity to make your dreams a reality. The key is finding a home that is considered “livable” so that you can get initial financing to purchase the home and then work on getting the loans to rehab the home. The basic utilities need to be working, the structure needs to be solid, and the windows intact in order for a lender to consider lending you money to purchase the home. 203K Rehab Loan The 203K loan is a great way to get one loan not only for the purchase of your home, but for the rehab too. This means that you don’t have to worry about two different loan payments or keeping track of what you owe on each loan. The 203K loan offers financing for both projects. The rate on the loan is fixed and the money that you need to fix your house is available. The value of your home after you complete the work is how the value is conducted and the amount of money that you are able to take out for the mortgage is calculated. The process is more in depth than getting a regular purchase loan, but the work is worth it in the end. Figuring out the Cost of Rehab In order for the lender to provide you with adequate funding, you need to figure out the cost of the rehab. This needs to be done with a certified contractor, which you can obtain from the lender. The contractor needs to provide details regarding how much each change will cost and show how they are necessary to make the home livable; certain luxury changes are not able to be included into the mortgage. Even if you plan on doing some of the work yourself, a contractor needs to create the bid in order for the mortgage company to approve the loan. Timing Timing is of the essence for the loan to go through. The loan will specifically state that construction needs to start 30 days after you close on the loan or before. In addition, the projects need to be completed within 6 months in order for the work to be paid. If you will need to live elsewhere while the changes are being completed, the lender may be able to add additional money to the loan in order to provide you with the funds needed to live somewhere else. Types of Changes The types of changes that will be covered by the 203K loan may vary by lender, but the general changes include: Any structural changes The changes that eliminate any type of hazards Plumbing enhancements Roofing repairs or replacements Floor repair or replacement Energy savings projects It is best to cover any changes or desired changes with your lender and/or contractor to determine what you can count on being covered so that you do not end up in trouble in the end.

1. A FIXER
UPPER
BLOWNMORTGAGE.COM
HOW TO BUY:
LENDER HOTLINE: 888-581-5008

2. If you cannot afford a home that is ready to
move into or you would rather buy a home
that needs a little loving and do the work
yourself, you will need a loan that provides
the funds to do so. This is not a readily
accessible type of loan, but the FHA offers
the opportunity to make your dreams a
reality.
LENDER HOTLINE: 888-581-5008

3. The key is finding a home that is considered
“livable” so that you can get initial financing
to purchase the home and then work on
getting the loans to rehab the home. The
basic utilities need to be working, the
structure needs to be solid, and the
windows intact in order for a lender to
consider lending you money to purchase
the home.
LENDER HOTLINE: 888-581-5008

4. 203K REHAB LOAN
The 203K loan is a great way to get one loan not only for
the purchase of your home, but for the rehab too. This
means that you don’t have to worry about two different
loan payments or keeping track of what you owe on each
loan.
The 203K loan offers financing for both projects. The rate
on the loan is fixed and the money that you need to fix your
house is available. The value of your home after you
complete the work is how the value is conducted and the
amount of money that you are able to take out for the
mortgage is calculated. The process is more in depth than
getting a regular purchase loan, but the work is worth it in
the end.
LENDER HOTLINE: 888-581-5008

5. FIGURING OUT THE COST OF REHAB
In order for the lender to provide you with adequate
funding, you need to figure out the cost of the rehab. This
needs to be done with a certified contractor, which you can
obtain from the lender.
The contractor needs to provide details regarding how
much each change will cost, and show how they are
necessary to make the home livable; certain luxury
changes are not able to be included into the mortgage.
Even if you plan on doing some of the work yourself, a
contractor needs to create the bid in order for the
mortgage company to approve the loan.
LENDER HOTLINE: 888-581-5008

6. TIMING
Timing is of the essence for the loan to go through. The
loan will specifically state that construction needs to start
30 days after you close on the loan or before.
In addition, the projects need to be completed within 6
months in order for the work to be paid. If you will need to
live elsewhere while the changes are being completed, the
lender may be able to add additional money to the loan in
order to provide you with the funds needed to live
somewhere else.
LENDER HOTLINE: 888-581-5008

7. TYPES OF CHANGES
The types of changes taht will be covered by the 203K loan
may vary by lender, but the general changes include:
Any structural changes
The changes that eliminate any type of
hazards
Plumbing enhancements
Roofing repairs or replacements
Floor repairs or replacement
Energy savings projects
LENDER HOTLINE: 888-581-5008

8. TYPES OF CHANGES
It is best to cover any changes or desired changes with
your lender and/or contractor to determine what you can
count on being covered so that you do not end up in
trouble in the end. In addition, always make sure to add 10%
on top of the intended budget to account for any last
minute changes or emergencies that may arise.
The 203K loan has helped thousands of Americans
become homeowners without them needing to purchase
expensive homes that would put them in over their head.
The 203K loan is the best way to get into a home and make
it yours.
LENDER HOTLINE: 888-581-5008

9. CLICK HERE
TO LEARN MORE:
BLOWNMORTGAGE.COM
LENDER HOTLINE: 888-581-5008
LENDER HOTLINE: 888-581-5008

10. INFORMATION PROVIDED BY:
Justin McHood
Mortgage Commentator
Information Originally Published: 9/1/15
Justin McHood is Americas Mortgage Commentator and has
been providing Mortgage commentary for over 10 years.
LENDER HOTLINE: 888-581-5008

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FACEBOOK.COM/MORTGAGECOMMENTATOR
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LENDER HOTLINE: 888-581-5008