While HUD homes can be appealing because of their lower price tag, more often than not, these types of properties also come with a laundry list of repairs and upgrades. This isn’t necessarily a bad thing, as making the necessary renovations allows new owners to really make the property their own. Plus, if the HUD home you’re eyeing is a fixer-upper you can qualify for a special kind of loan that can help you give your new home the TLC it needs.
It’s called an (FHA) 203(k) rehabilitation loan and it’s a great option for any buyer interested in a fixer-upper because it allows you to purchase the home with a reserve that’s put in escrow to fund renovations.
Who’s a good candidate for a fixer-upper loan?
These types of loans are good for people who can afford the mortgage payment, but they don’t have a lot of cash on hand to be able to pay for renovations outright.
An (FHA) 203(k) loan is also ideal for first-time buyers with limited budgets who want to live in a particular area. These loans make it feasible for buyers to get a less expensive home in a desirable area and fix it up.
Inventory in Denver is limited, as anyone hunting for a house can attest. For this reason, many buyers – particularly first time buyers – are adding HUD homes to their searches. Knowing you’re eligible for certain kinds of loans also make HUD homes an appealing option.
If you’re interested in checking out HUD homes in Colorado, the first thing you’ll want to do is find an agent experienced with the HUD home buying process. Metrowest specializes in these types of sales – give us a shout today, we’d love to work with you!