There are Home Loans for Fixer Uppers!

If you’ve spent days, weeks, or months opening home search apps only to find that your ideal home is still not popping up, you’re not alone. Here’s how your mortgage banker and real estate agent can turn things around. 

Renovation Loans

Did you know that you can finance the purchase and renovations of a home with one mortgage? These home loans for fixer uppers are called renovation loans and there are a wide variety of them available with different down payment and qualifying requirements so you can obtain the best one for your situation. Here’s how it works: 

Let’s say you find a home that ticks off the major boxes on your wishlist for $250k, but needs about $20k in renovations to tick off all the rest. You can take out a renovation loan for $270k to cover both costs! The best part is that the amount is financed over 30-years at a fixed interest rate, making your monthly payments much more affordable than if you bought the house and then paid for renovations with a short-term personal loan or high-interest credit cards. 

Cross Out the Cons of a Fixer Upper 

The traditional idea of purchasing a fixer upper presents three major cons. (1) It’s intimidating if you plan to DIY or have never hired contractors before. (2) You can’t pin down an end date as to when your perfect home will be completed. (3) You’re unsure how much it will actually cost to finish. Those are some pretty scary cons. But here’s where a renovation loan comes in: 

When you apply for a renovation loan your real estate agent, mortgage banker, a licensed contractor, and sometimes an assigned consultant work together to make a sound plan. This plan includes the verified professionals who will be doing the work, a maximum completion date, and the exact funds needed. It doesn’t get much easier for a fixer upper buyer! 

Enjoy the Pros

Now that you know the cons are taken care of, let’s focus on the three major pros. (1) No more waiting for the perfect home to come onto the market and avoid the fierce competition when it does. (2) You and your real estate agent have a great advantage when negotiating with the seller or are likely already working with a seller who is highly motivated. (3) Be completely confident in your home purchase because you’re assured that it will match your entire wishlist. With home loans for fixer uppers, the home you’re envisioning is within reach and you only need to reach out to find it!