Fixer-upper homes can be a good choice for those home buyers who are looking to make a house uniquely theirs.  Or perhaps, as a buyer, you have found the perfect home but it needs some improvement.  Are there financing options for you?

Yes!  But before you dive into purchasing that fixer-upper, here are a few points to remember:

renovation loanWeigh Pros and Cons Of a Fixer-Upper Home

Like everything, there are pros and cons to purchasing a fixer-upper.  A home that needs some improvement can be a great option for buyers who are looking for a way to keep initial costs low while they save up for renovation costs over time.  A fixer-upper home can also be a good path to first-time homeownership.

But, a fixer-upper can be a mixed bag and is not for everyone.  Renovations are a huge time investment and there may be unforeseen issues that can be costly, like structural problems.  Before purchasing a home that needs renovations, be sure that you have the resources and drive to make your dream attainable.

Loans Are Available For Fixer-Upper Homes

When it comes to getting a loan for a home that needs some TLC, you’re in luck!  There are programs available that can help make your home rehab journey a reality.  Some of these programs include:

It’s important to remember that these programs are designed for buyers who can afford a mortgage payment, but cannot outright afford to pay for renovations.  Therefore, they come with strict guidelines and are not typically recommended for those homes that only need minor changes or updates.

Know the Timeline & Costs

We’ve all seen renovation shows that make renovating a home look easy, but that is not always the reality.  Before you purchase a fixer-upper, calculate your budget and be generous on the estimate.  Costs can rise depending on the price of materials and unforeseen repairs.

Are you planning on DIY-ing or using a contractor?  Many renovation loans require you to have a reputable contractor available that will stick to the budget and an approved timeline.

Always Get the House Inspected & Check For Inspection Clauses

As with all homes, inspection clauses help protect you from bad deals and determine if a house is a good investment.  It will also help identify problems that you can take into account in your budget.  If those problems are too big for you, the inspection clause will let you back out of the deal and move on.

Start Your Search For The Perfect Home Today

Contact Eric Merchant At 314.541.1218