Home rehabilitation loan/grant programs?

Question

We are buying a fixer upper, and do not qualify for our local programs due to our income being too high. However all of our money is going towards the down payment, and we don't have hardly anything left to do rehab/repairs. Does anyone know of any good government loans or programs we can look into for restoring an old home?

Answer 1

FHA 203(k) is a low interest rehab loan program without income qualifications.  It is possible to use this type of loan to purchase a qualifying rehab property, or to rehab it, after you've bought it.  It requires approval from a qualified inspector to ensure all rehab planned is cost effective, and that all rehab required to bring the property up to FHA standards will be done.  Money is escrowed for rehab costs, and doled out to you to pay for rehab, as the work is accomplished.  The biggest challenge might be in trying to find a bank to do a FHA 203(k) loan, since lots of them are skittish these days.  There is no list of banks that will do them.  You have to just call around, and ask.  Be prepared to encounter people who've never heard of the program.  But, just keep saying "FHA 203(k) Rehab Loan" and eventually you'll find someone who knows what you're talking about.

Answer 2

It's a known fact that most of us live about 25% beyond our means.  If your income is so high that you can't qualify for any of the help programs available to you through the local or state agencies then you probably won't qualify for anything federal either.    Can't imagine why you'd buy a house that will take all your money to make the downpayment.   What happens should one of you get sick for a period of time or God forbid, have an accident or something unforseen.  Maybe you ought to look for another house.  There are tons of them out there now.  It's pretty much a buyers market.  

Answer 3

Unless your home is a registered Historical Home there is nothing.

Those grants are matching.  Means you pay to have the work done and they reimburse you half but all work must meet the criteria

Cheaper and less stress if you just apply elbow grease and do repairs as you go along.