Hi community, looking for some advice & pointers! We came across a bank owned property (REO) which had gone through the foreclosure process, and we're interested in purchasing it as our primary residence. It's listed at $250K, and likely needing repairs somewhere in the ballpark of $75-100k to get back into more livable shape.
My question is, what are the best financing options for us to purchase and renovate? We’d have enough for a down payment, and likely enough to cover the repairs out of pocket ourselves. However, we’d like to avoid sinking in so much into the house up front, and prefer leveraging low financing options.
Thoughts? Advice? Thanks in advance!
Since you will be living there, you can use an FHA 203K loan. I will include the purchase and rehab costs plus budget contingency and mortgage insurance. Only 3.5% down payment is required. Lender will require contractors that are 203K approved.
@Christopher Phillips thanks for the advice, and suggestion on the 203k loan