FHA home loans available for repairs

By MARY PEREZ - meperez@sunherald.com

BILOXI -- Homeowners can get a FHA loan of up to $271,000 to renovate their homes or make them more energy efficient, local builder Michael Fearn told the Biloxi Council Tuesday.
He is sponsoring a seminar for city officials and people in the building industry from 11:30 a.m. to 1:30 p.m. Tuesday at Biloxi’s Community Development building, 676 Dr. Martin Luther King Jr. Blvd. Seating is limited.
Fearn said the Federal Housing Administration’s Section 203(k) loan program provides money for repairs and upgrades of primary homes. The long-term, low-interest loans also can be used to purchase a home and make needed repairs and to move or raise a home.

He said after Hurricane Katrina, people didn’t have money to make all the needed repairs.
“This allows them to do everything and get their home in terrific shape,” he said.
Luxury improvements are not eligible but the money can be used for new appliances, heating and air conditioning, roofing, wells and septic repairs, exterior paint and siding, additions, hardwood flooring, energy-efficient doors and windows, solar panels, handicapped accessible equipment and other improvements.
The amount of the loan is based on the estimated value of the improved property.
Fearn said the loans also can be used to convert a single-family home into apartments and to renovate the floors over a commercial property into apartments.
“Most people are not familiar with the program,” he said. He has held seminars for 450 real estate professionals and said it’s important to educate people about the program and availability of funds.