Dave Luczak of Inlanta Mortgage (www.Inlanta.com), forwarded the following information regarding special financing that might help agents provide new opportunities to their clients.  He sheds light on some the of novel financing opportunities for those who may purchase a property needing repairs, expansion or other improvments.  He advises:

"When showing your clients a home that needs repair, give them some information on our Federal Housing Administration (FHA) 203K renovation loans. These loans are perfect for a bargain hunter who has spotted a fixer-upper or a foreclosure in need of immediate repair, or a client who has found a home that would be ideal if only there were a third bedroom and a second bathroom (or needing MAJOR remodeling!)

Our renovation loans provide the money to both purchase the home and finance the home's renovation. With one loan, there is only one application, one set of fees, one closing and one monthly payment. At closing, the house is paid for, and the repair money is put into a trustee account for disbursement as repairs are completed. Improvements can include anything that adds value to the home, such as a room addition, new carpeting, APPLIANCES,  landscaping, plumbing, roofing or a new kitchen. The loan can also be used for energy-efficiency improvements that qualify for tax credits* under the new stimulus package.

Another great advantage of a renovation loan is that it provides borrowers a loan based on the increased property value after renovation. But that's not the only financial upside. The required down payment on a renovation loan can be as low as 3.5%. As a tax deductible first mortgage, the renovation loan will usually feature a lower interest rate than a second mortgage (impossible to get now!) and improvement costs can be spread over the term of the loan. The loan can also provide financing for up to six months of mortgage payments if the house is not occupied during construction."

Dave also reminds us that it is best to always consult your tax advisor for tax information and advice.