HUD homes can be very appealing due to their lower price point, but most of the time these types of properties come with a list of necessary repairs and upgrades. These can range from small cosmetic changes to extensive repairs, which makes it crucial to get a thorough inspection.
While it may seem daunting at first, home buyers who are willing to put a little time and money into addressing necessary renovations can truly make a property their own, as well as increase its value. Plus, if the HUD home you’ve got your eye in is indeed a fixer-upper, you may qualify for a special kind of loan that can help you give your new home the attention it needs.
This loan is known as 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.
These types of loans are ideal for people who can afford the mortgage payment on a home, but they don’t have a lot of cash on hand to be able to pay for renovations outright.
A (FHA) 203(k) loan is also good 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 numbers are slowing increasing in Denver, but affordable options are still limited for many. 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!