THE HOUSE ID LIKE TO BUY NEEDS EXTENSIVE REHABBING. HOW CAN I AFFORD THE REHABBING AND THE MORTGAGE AT THE SAME TIME?
Many lenders now offer mortgage-rehab loans which help people do just that. The interest rates will probably be a fraction or a percent higher that regular mortgage rates, however because construction tends to be more of a risk. To apply for a mortgage-rehab loan you’ll most likely have to show the lender an architect’s drawing and contractor’s estimates as the lending decision is based mainly on what the finished building will be. Generally, you can obtain an 80% loan for the purchase of the home and a 90% loan for the rehabbing. For additional information on available mortgages and other real estate matters, consult a real estate agent who’s a REALTOR, a member of the NATIONAL ASSOCIATION OF REALTORS.
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