In the current real estate market there are many foreclosures that make for good investment opportunities. The majority of the homes are good investments because they were foreclosed upon and the former owner did not take care of their home. Therefore, the home needs some rehabilitation to increase in value. Usually a homebuyer who wants to repair a home needs to obtain financing first to purchase the house. Then the homebuyer needs additional financing to do the rehabilitation. When the work is complete, the homebuyer needs a permanent mortgage to pay off the interim loans.
If you can find a HUD home that you would like to buy, think about applying for the section 203(k) program through HUD the borrower can get just one mortgage loan to purchase and repair a home. To qualify for the 203(k) loan program the property needs to be a one- to four- family dwelling. The home must have been completed for at least a year.
Apply for the 203(k) loan as you would a FHA loan. Look for a lender that offers FHA mortgages. Also, find an authorized HUD real estate agent.
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