FHA 203k loan?
My husband and I thought we'd stay in our current home forever. It will be paid off in October, and financial freedom was sounding really good! Plus, we have so many projects going here, that we wouldn't be able to sell for even a low price in this market. But (I'm sure this is a familiar story!) We fell in love with another house...Another project. It's a Hud house that needs so much work, it has sat and been reduced a few times. I know there are many people (homebuyers and investers) waiting for the next reduction, to pounce on it. If that happens, there will be a bidding war. I'm working with a good realtor and hope to go in now with an offer that the bank has already said they will consider. The problem is, I'm finding out that the loan needs to be an FHA 203k loan, and I'm not finding a lot of banks that offer it. The home needs 20k put into it before we could even move in, and this type of loan would allow for that, plus give us the escrow money that is already set aside for fix some of the problems that the gov. knows about. Does anybody know of a way to apply for this type of loan online or over the phone?
If we got this house, we would use a little money of our own to get our current house in rentable condition, and just rent it out until the market improves. If we don't get the house, we'll apply for a home equity loan and completely renovate our current house.