I recently sat down with Danielle Duran from Wells Fargo Home Mortgage here in Albuquerque NM who gave me the requirements for this loan program...I was so impressed and excited to tell you all about it. Below is a general outline of the program. You still must qualify through income, credit etc but can be a great option to add new appliances to a foreclosure home or new carpet, paint and roll it all into the loan.
The Purchase and Renovate Wells Fargo program provides financing that enables you to immediately turn the house you just bought into the home always wanted. Add a bath, cook up a new kicthen, repair, renovate or extend - all with a single loan at attractive first mortgage rates. As long as you qualify the loan can be used on any home.
More Money - The loan amount is based on the value of your home after the improvements have been made.
Lower Monthly payments - Purchase and improvements are financed simultaneously, so renovation costs are spread out throught the entire term of the loan.
Tax benefits - Interest on renovation costs is included in the first mortgage, so it may be tax deductible.'
Speed - Renovation can begin immediately after closing.
Single-close simplicity - Just one application, one set of fees and closing costs, one monthly payment for the loan term.
Flexibility - No required improvements or restrictions on repairs; luxury items such as pools and spas may be included.