Nowadays everyone is working hard in ensuring that they buy their own homes and that is why you will find that almost 60% of Americans own a home. In order for someone to own their own home it is usually not an easy process as many might think. Prices tend to be high in many parts of the country especially the desirable ones. You will find that not so many people can b able to save money so that they can buy a home. People are choosing the option of buying a home that needs repairing instead as it is a cheaper option. Those people who buy such phones eventually remodel the home and then later on they sell it at a really good price that’s making profits and the money that the end of getting they can use to buy the home that they had initially thought of getting. You might find yourself in a situation whereby you don’t know how you can afford to buy the home and still afford the repairing money that is needed. The good thing is that you can be able to get a home loan for more than the purchase price though there are some restrictions, but it is possible.
If you are someone who is well informed about home mortgages then you definitely know more about the federal housing administration loans that is usually there. The good thing about such loans is that someone does not have to struggle because they don’t payments are really not high as they are only 3.5%. For the people who could not afford to buy the whole house such loans have really helped them quite a lot as they are now able to do so. The FHA usually helps people who are looking to buy fixer-uppers with the 203k mortgage. There are usually two types of loans, the 203k standard and the 203k limited. The 203k standard loan is a fairly broad and general loan. As long as there is an original foundation that’s over a year old you can be able to get this loan and use the money to renovate or rebuild. There are usually rules that should be followed when you take that 203 loan for example it is a must for you to hire a 203 k consultant who will manage the whole projects and the whole repairing shall not be more than $5000. If your whole project needs minimal repair then you should know that that 203 k limited loan will be perfect for you. The minimum amount of money that you should be given should not exceed $35000 over the initial price that you paid buying the home.