Financing the Fixer-Upper: Buy and Renovate in One Loan!

Today you can buy a house and finance the improvements all in one loan!

How it works:

  • Find One:  You love one of the fixer-uppers I’ve been featuring.  It costs $300k.  I represent you and we make an offer and go under contract, contingent on inspection and financing.
  • Estimate Renovation:  I help you bring in the necessary experts (inspectors / contractors) to estimate the renovation.  The estimate comes back at $150k.
  • Financing:  Your loan officer makes sure you qualify for a $450k loan ($300k for house +$150k for renovation).  An appraiser checks to be sure with the renovation the property would appraise at $450k.  If it does and you qualify, your loan would be  for $450k.  It would include the purchase price of the house plus the renovation cost.  The contingencies are your protection if the house doesn’t appraise at $450k or the renovation costs are higher than the loan amount you can afford.
  • Downpayment: For a 203k loan, you only need to put 3.5% down ($15,750).   If you have more to put down, you might qualify for a conventional loan.

This is a great option for renters who want to build their dream home!  Or if you currently own a home and can carry more debt, this may work well for you too.

Interested?  Contact me to learn more!

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3 Comments

Filed under Real Estate, Renovation

3 responses to “Financing the Fixer-Upper: Buy and Renovate in One Loan!

  1. Also, check out the FannieMae HomePath Renovation loan… if it qualifies. But great opportunities to buy for less and make your home uniquely yours.

  2. Pingback: Renovation Realtor(R): The Case for the Fixer-Upper | Jenny Macomber Homes

  3. Pingback: Renovation Realtor(R): Deals for the $350k-$450k Buyer | Jenny Macomber Homes

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