Will a Bank Finance a House With Foundation Problems?
So you’ve found the perfect fixer-upper house, one which will serve you well either for investment purposes or as a new residence.
There’s only one problem, though: it needs home foundation repair.
Will a bank finance the repair work? Believe it or not, you have financing options that are worth considering. Federal-backed loans can help to turn your distressed home into a residential gem.
Three ways that Uncle Sam can help
The government knows that real estate is a vital part of the American economy. That’s why it’s happy to encourage and support home repair and investment.
The three primary options offered by Uncle Sam are:
- A Freddie Mac CHOICE Renovation Mortgage: This program is especially aimed at real estate investors. It’s a good option if you’re interested in “flipping” the home. It does require reasonably good credit.
- A Fannie Mae Home Style Renovation Mortgage: This program’s primary advantage is the flexibility it offers. You can use any qualified contractor you choose, including Align Foundation Repair. You can also use the funds to pay for other related expenses, such as inspection fees and title costs.
- An FHA 203(k) Loan: This program is designed for homeowners with challenged credit who need help repairing or improving their residence. While it’s easier to qualify for these loans, they do come with higher interest rates than other programs. Still, they offer a far better option than letting your home’s foundation problems grow worse over time.
How to access these programs
Freddie Mac, Fannie Mae, and FHA loans are provided in partnership with private lenders.
Before applying, you should gather as much information as you can about your personal finances and the home that needs financing for foundation repair. The better organized you are, the quicker and easier the approval process will go.
Align Foundation Repair’s financing option
Another option worth considering is our financing program. It’s specially designed to help residents in the Dallas-Fort Worth area as well as North Texas in general. It offers payments as low as $125 a month and no prepayment penalties. Our customer service experts can give you all the details.
The first step in repairing a bad foundation is to know how much the job will cost. That’s why we invite you to contact us for your free, no-obligation quote.
Having this information on hand will help you to make a fully informed decision. So contact us today. We look forward to hearing from you.