How To Finance a Fixer-Upper
Finding the perfect home in a competitive housing market isn’t always easy. What may be more realistic is finding a fixer-upper in need of some repairs, updating or remodeling.
But what if you find a house you love that needs repairs, and you don’t have enough funds available to both purchase and renovate the property?
At Resource Financial Services, we offer renovation loans that help you move forward with your home improvement projects sooner. Our renovation loans let you complete the improvements without compromising due to budget restrictions. You can pay for the home improvements over the course of your mortgage loan.
If you’re considering financing a fixer-upper, know what you’re getting into:
Location.You’ve heard it before, location is number one when making a real estate investment. Look at the neighborhood. Are the homes well-maintained and mostly owner-occupied? Make sure your fixer upper is in a desirable or up and coming neighborhood.
Layout.The layout of the home should flow. Bedrooms at opposite ends of the home may not appeal to couples with young children. The same is true of homes with the master bedroom upstairs and the others downstairs. Kitchens with more than one entrance are desirable.
Simple fixes. Every fixer-upper needs some help, but some fixes are cosmetic and less expensive than others. Cosmetic fixes include painting walls, refinishing floors, installing new light fixtures, replacing doors, adding or replacing baseboards or trim, replacing bathroom subfloor due to a leak, installing new or refacing kitchen cabinets, exterior paint and adding a deck or outdoor living space.
Major rehab. More expensive fixes include replacing the HVAC, shoring up foundations, re-roofing, replacing plumbing, replacing sewer lines, replacing electrical, pouring concrete for driveways, installing replacement windows throughout, complete kitchen or bath remodels, building garages or other additions.
Inspections.You will want to have a home inspection by a credentialed home inspector before committing to the sale. Different types of home inspection include roof certifications, pest inspections, sewer line inspections and engineering reports. Consider these the cost of getting a good deal.
Talk to one of our experienced mortgage bankers who can help you purchase or refinance a home and make improvements, regardless of the current condition of the home.
At Resource Financial Services, we love making people’s dreams of home ownership a reality. We start by helping you find your home with our online search tool.Visit us online today at rfsmortgage.comto get started. Then contact a Resource Financial Services mortgage banker at 877.797.4545 to discuss your mortgage options and your financial goals. Let us walk you through the process and welcome you home to a better mortgage.