Homepath Renovation Mortgage

[Bryan H.]

Looking at making an offer on a Homepath property. Its in rough shape and needs interior rehab. I want to get the Homepath Reno mortgage so I can roll the rehab costs into the mortgage. I plan to keep it as a long term rental property.

Do I need to get estimates before I agree on a purchase price and include those with my offer?

Or do I negotiate a purchase price, then get repair estimates? If repair costs are too much, can I back out and get EMD back?

I'd like to keep rehab below $20k on a $40k house. Its 4/2, 1100sf and should rent for $1200 if done well. With 20% down, ROI is about 38%.

Looking to hear how it goes.
Thanks

[Dawn Anastasi]

I checked into this at one time and the main thing I didn't like about the Renovation part is that the program won't allow you to do ANY of the work, even replacing a door knob or painting. Everything has to be done through licensed contractors. (This was 2011 when I checked into it, maybe things are different now.)