A Welcome Home reader asked about buying a house that needs repairs and whether it’s possible to roll those costs into a mortgage. Realtor Bill Turner offers some perspective:

“When considering a home purchase and especially one where repairs are needed, it is best to check with the professionals in mortgage lending, to see if the cost of repairs can be rolled into the purchase financing. There are two paths that a buyer can explore with the ‘FHA 203K’ loan, as well as the conventional ‘Homestyle’ renovation loan. Keep in mind that you will need to qualify for the entirety of the loan amount. Also, the repairs will need to be quantified by licensed contractors, with formal estimates, before the renovation loan is approved. Before applying for these loans, have a licensed home inspector provide a detailed inspection of the home, and identify the necessary repairs. Keep in mind that if a home is riddled problems needing repair—and the costs outweigh the investment—it might be time to run away from the purchase.”

Have a question for a local Realtor? Ask it here: welcomehome@theday.com

Bill Turner, Sales Executive

Berkshire Hathaway, New England Properties

Mobile: (860) 501-5453

billturner@bhhsne.com