Fixer-Upper Historical Breaks

    Fixer-Uppers

    Is there a tax break for a fixer-upper house if it is considered historical?

    Qualified rehabilitated buildings and certified historic structures currently enjoy a 20 percent investment tax credit for qualified rehabilitation expenses. A historic structure is one listed in the National Register of Historic Places or so designated by an appropriate state or local historic district also certified by the government.

    The tax code does not allow deductions for the demolition or significant alteration of a historic structure.

    The U.S. Department of Housing and Urban Development’s Section 203 (K) rehabilitation loan program is designed to facilitate major structural rehabilitation of houses with one to four units that are more than one year old. Condominiums are not eligible.

    The 203(K) loan is usually done as a combination loan to purchase a fixer-upper property “as is” and rehabilitate it, or to refinance a temporary loan to buy the property and do the rehabilitation. It can also be done as a rehabilitation-only loan.

    Plans and specifications for the proposed work must be submitted for architectural review and cost estimation. Mortgage proceeds are advanced periodically during the rehabilitation period to finance the construction costs.

    For a list of participating lenders, call HUD at (202) 708-2720.

    If you are a veteran, loans from the U.S. Department of Veterans Affairs also can be used to buy a home, build a home, improve a home, or refinance an existing loan. VA loans frequently offer lower interest rates than ordinarily available with other kinds of loans. To qualify for a loan, the first step is to apply for a Certificate of Eligibility.

    · Is there a Tax Break for a Fixer-Upper House if it’s Historical?

    · Are there Special Loans for Fixer-Uppers?

    · What are Building Codes?

    · How do I find a good Contractor?

    · Is Remodeling worth the Price and Time?

    · How do I look for Fixer-Uppers?

     

     

    Fixer-Uppers
    Condos, Appartments, & Single Family
    Vacation Homes
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