Buying A Fixer Upper

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What is Fixer-Upper?

A house that is kept for sale at a lower market price due to major flaws and repair requirements.
Fixer-upper mortgages are the best solution to finance the property for cosmetic and structural improvements.
“ A recent survey reveals that 60% of Americans are investing in Fixer-Uppers to earn more profits.”

For the House that is Almost Perfect, we have the Perfect Solution. A Mortgage & Home Improvement Loan All In One | Purchase or Refinance

Eligible Renovations

  • Remodel the kitchen or bath
  • Renovate or add a room
  • Paint the house or add siding
  • Add a porch, deck, or patio
  • Replace a leaky roof
  • Put in new flooring, carpeting, or tiling
  • Conserve energy with new windows
  • Swimming Pool
  • Landscaping
  • Dormers
  • Outdoor Kitchen and/or Fireplace
  • Built-in Spa
  • Major structural alteration & More
  • Talk with a Licensed Loan Officer

How to Buy a Fixer Upper?

It’s the Location, Layout, and Condition that matter the most!

#1. Hire a Qualified Home Inspector:

It may cost you hundreds of bucks but is all worth it. A professional can help you with a detailed report of repairs required. Only they can reveal if there are cracks in the foundation, plumbing issues, or the septic tank requires to be replaced.

#2. Make an Estimate of Renovation Cost:

It includes pricing out the cost of labor and material. You may have to hire a contractor depending on the current situation. So, you can set the budget accordingly for different areas. Call us to evaluate and get a free quote from our contractors

#3. Check if you need a Permit?

It is essential to request an online Permit or in-person from the municipal government office depending on the complexity of the project. It includes: Construction, Room additions, Sheds and Garages, Fences , Structural work, Window installation, Plumbing and electrical work.

#4. Analyze DIY Renovations:

If you are handy, you can also identify and figure out some little repairs like house painting, backsplash, drilling, etc. that don’t require professional help.  If you are able to do these, it can help you save hundreds of dollars.  Note: This is not included in the work estimate and mortgage.

#5. To understand the various Fixer-Upper Loan Options

Is it Fannie Mae, Freddie Mac, FHA(203k), or VA? Explore the different loan options, and pick the one that fits your needs and budget. Don’t worry! Our licensed loan officer will do the job for you. Contact at

#6. Make a Smart Offer!

Make an offer that balances the repairs needed and your deal. Always keep in mind the contingencies that allow you to back off if some major issue is found during the home inspection. Bargaining with the seller is the other trick if the house has lots of flaws. Walk away if required!

Fixer-upper mortgage option

Unlike other loans, fixer-upper mortgages offer low-interest rates for financing the house.
The benefit is that such mortgages can be paid off easily in a longer period

Renovation Mortgage

A renovation mortgage is a type of mortgage that includes funds for home repairs and improvements. Maybe you want to move into a neighborhood with stellar schools, but the only way you can afford that is by getting a property in less-than-ideal shape. A renovation mortgage can help you buy the home and fund the remodeling.

FHA 203(k)

The best renovation loan option for borrowers with low income and credit scores. It is offered by Federal Housing Administration, FHA 203(k) for improvement projects.

Fannie Mae HomeStyle

You need to have a higher credit score than FHA(203k)to qualify for Homestyle mortgages. Insured by Fannie Mae, you can use this loan for luxuries, landscaping, pool, etc.

Freddie Mac CHOICE Renovation loan

Approved by Freddie Mac, this renovation loan helps repair the losses made during natural disasters. Borrowers can choose to DIY repair before closing and earn down payment credits.

Is Buying a Fixer-Upper house worth it?

When investing in a Fixer-upper house, bear in mind that you have to make it profitable.
So, plan and implement the strategy to do the needful repairs and maintenance.

Pros

  • Low down payment and list requirements.
  • Better chances due to low competition.
  • Customize & Remodel your house.
  • Better Quality with better choices.

Cons

  • Without a balance, you may end up with over-budget renovations.
  • Some hidden costs & unexpected repairs can pop up.
  • Long-term mortgages

#5 Tips for Buying an Upper Fixer?

When buying an Upper Fixer, always bear in mind that Upper Fixer homes come with financial and logistical issues.
So, it takes a lot of effort to make substantial repairs and amendments to make it a lively place.
But with the profits earned over time, it’s all worth it!

Location, Location Location

It is the top mantra in the real estate business. So, do some qualitative research on surroundings, neighborhoods, and local property prices before you buy a fixer-upper. We suggest hiring a real estate agent.

Home Inspection

Do not overlook and neglect the home inspection part. We know it may cost you some hundreds of bucks. But trust us, only a qualified home inspector can reveal the present situation of the fixer-upper house.

Balance between the locked deal and repair budget

To avoid spending more on repairs and renovations, it's important to set and maintain your budget for different repair projects.

DIY Renovations

In Spite of hiring some professionals for house cleaning, painting, gardening, etc. you can save money by doing it yourself.

Choose the right Fixer-upper mortgage

It’s important to pick the right financing option that offers the remodeling cost in the loan amount.

FAQs about Buying a Fixer-Upper

Well, it depends on the flaws, and complexity of the job to be done. A professional home inspector can make a detailed report on the repairs required. It includes

  • Environmental issues
  • Structural soundness
  • Air conditioning and heating (HVAC) systems
  • Roofing
  • Electrical & plumbing issues
  • Sewer systems
  • Driveway, decks or steps
  • Bathrooms, and kitchen repairs.
  • Foundation Cracks if any.

You can request our loan advisor at (800) 562-6715 to evaluate your income and credit score. If you withstand the minimum threshold, we’ll immediately approve your loan.

  • Replacing bathroom subfloors 
  • walls, painting, and stripping wallpapers.
  • Refinishing the floors (laying tile or carpet)
  • Replacing/ Installing Doors.
  • Light fixtures & Installing ceiling fans. 
  • Adding Trims or Replacing baseboards.
  • broken windows Repairs
  • Installing, Painting, or Refacing kitchen cabinets.
  • Changing out outlets and light switches
  • Painting the exterior
  • Adding a deck

Although conventional loans are approved with a minimum of 10% to 20% down payment. But there are other loan options like FHA( Federal housing administration) accepting a 3.5% down payment.

To get started contact our licensed lending officer at (800) 562-6715