Mesa company uses mortgage to combine home repair costs
Reported by: Christopher Sign - May 29, 2009
Channel 15 News Report
In a unique partnership, a Mesa mortgage company and custom-home builder have teamed-up to use a government program that lumps the sale price of a home with the cost of upgrades or repairs.
"This program is not really well known, there certainly aren't many people taking advantage of it," said Via Homes owner Trudy Licano.
Licano is referring to the Federal Housing Administration Loan section 203k which allows a home buyer to include the cost to repair their home and the price to complete upgrades or repairs to the structure.
"Basically, if you purchase a home for $100,000 and the work you want done costs $20,000, your new purchase price for the home is $120,000." said Judi Gustin, a loan officer with Sun American Mortgage Company.
Gustin says a buyer can use the FHA program to borrow up to $346,250 and must put 3.5 percent down.
"And you have to spent at least $5,000 to repair or upgrade the home," said Gustin.
