HUD has a program out there that will allow you to buy or refinance your home and create an escrow account to build in the repair costs.
For example, You find a house you want to buy but it needs repairs beyond what you can afford out of pocket. Traditionally you would secure financing to secure the house, a rehab or construction loan (with high rates and short amortization times), and permanent financing after the work is done.
HUD’s program will allow you to buy the house and create an escrow repair account, so long as the work is done within 6 months. You can even roll in 6 months of mortgage payments to allow for the time the work is done and house may be vacant.
Items to consider for repair escrows are: room additions, remodeled bathrooms and kitchens, permanently installed appliances, heating, air conditioning and electrical systems, whirlpool bathtubs, roofing, flooring, tiling, carpeting, double pane windows, insulation, and major landscape work as ideas.
You should allow for 60-90 days for this type of refinance or purchase contract to close efficiently. There are different processes and it is much more labor intensive then a normal home purchase or refinance. With great patience comes great reward.
If you have questions about this program or want information you can either email me or call (303) 779-0591 x2~ Ray