on August 28th, 2014
Buying a “fixer upper” or simply a house that needs repair can be a catch-22. Often times a bank won’t lend money to buy the house until the repairs are finished, but the repairs can’t be completed until the house has been purchased.
However, there are certain options available for just this task. For example, the U.S. Dept. of Housing and Urban Development (HUD) offers a loan to get through the task of repairs. HUD’s 203(k) program can help you out of this quagmire by allowing you to purchase or refinance a property plus include in the loan the cost of making the repairs and improvements. The FHA insured 203(k) loan is provided through approved mortgage lenders nationwide. It is available to persons wanting to occupy the home.
Electing to buy a fixer upper can be a beneficial decision due to the relatively lower property cost initially followed by a subsequent jump in home value. However, the fixer upper process can sometimes be daunting and discouraging. If you are planning to buy a fixer upper or just want to remodel your home, I would love to guide you through this process.