Buying and restoring a historic home might be easier than you think. If you can qualify for a mortgage, you might be able to get financing for the restoration as well, under Section 203(k) of the National Housing Act (NHA). This legislation makes it easier for buyers to stay in the historic market of their choice, and find a home to suit their needs.
The 203 (k) program differs from other mortgages because it provides financing beyond the cost of the house or property. In most cases, upgrades to a property must be completed before the mortgage is made, in order to provide adequate loan security to the lender - this might require a buyer to find a high interest interim loan for their restoration after acquiring a property. With the 203 (k) program, a buyer can have just one mortgage at a long-term rate, covering both the purchase and rehabilitation of a property. These mortgages are based on the projected value of the property after the upgrades, taking into account the cost of the work.
Lenders can minimize their risk under the 203 (k) program by having their mortgage endorsed by the Department of Housing and Urban Development as soon as proceeds are disbursed and the mortgage escrow created.
Morristown NJ has beautiful historic homes that date back to the civil war. Some have already been restored and some are in need of love. For assistance with Morristown NJ historic homes and real estate, give me a call on 973-214-5872 or email me at szanzonico@optonline.net Susan Zanzonico - Keller Williams, Morris County REALTOR
The 203 (k) program differs from other mortgages because it provides financing beyond the cost of the house or property. In most cases, upgrades to a property must be completed before the mortgage is made, in order to provide adequate loan security to the lender - this might require a buyer to find a high interest interim loan for their restoration after acquiring a property. With the 203 (k) program, a buyer can have just one mortgage at a long-term rate, covering both the purchase and rehabilitation of a property. These mortgages are based on the projected value of the property after the upgrades, taking into account the cost of the work.
Lenders can minimize their risk under the 203 (k) program by having their mortgage endorsed by the Department of Housing and Urban Development as soon as proceeds are disbursed and the mortgage escrow created.
Morristown NJ has beautiful historic homes that date back to the civil war. Some have already been restored and some are in need of love. For assistance with Morristown NJ historic homes and real estate, give me a call on 973-214-5872 or email me at szanzonico@optonline.net Susan Zanzonico - Keller Williams, Morris County REALTOR
