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Frequently Asked Questions for Major Rehabilitation
Do I have to be purchasing and rehabilitating a Home
to qualify? You may be buying a Home which is in need of a lot of improvements (improvements which will equal or exceed one third of the original purchase price of the Home). You may also refinance the mortgage on a Home yu currently own and include the rehabilitation cost into one loan. What is the minimum down payment required for major
rehabilitation loans? The minimum down payment is 10% of the lower of the total purchase price (the sale price of the Home plus the amount needed for the rehabilitation) or the appraised value of the property after rehabilitation. Your lender will be helpful in determining these amounts with you. When can the rehabiliation work begin? Rehabilitation work may begin once your lender has sent WHEDA your application package, received an approval from WHEDA and closed your loan with you. Does my lender have to provide the temporary financing
for the rehabilitation period? No. WHEDA will provide the tempory (interim) financing so you'll only have one loan closing. You'll save on closing fees! What types of properties qualify for major rehabilitation?
Properties may be single family residences or duplexes. Properties must also have been residences for at least 20 years prior to the date on which rehabilitation begins. What kinds of rehab projects qualify?
As long as the total cost of the improvements equals or exceeds one third of the original purchase price of the Home, most repairs, modernizing, permantently affixed redecorating and additions will qualify.
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