Can a Fixer Upper Loan be used to buy a HUD Home?

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!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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