House Purchasing and Remodeling Options- Help

Hey

I'm pretty uneducated in the remodeling option department- I was wondering if anyone knew if this was possible

Say FH and I wanted to stay in the 400K-450K range when buying a house/paying a mortgage

Could you possibly buy something for 200K and update but with a loan? Or do you need to pay cash/credit ?

-We've been looking and houses in our range make me wanna just stop looking b/c soo many need updating

what are our options? Thanks

Re: House Purchasing and Remodeling Options- Help

FHA is a loan that you can take out that has home improvements bundled in. We wished we could of done that but unfort. dh had bad credit. I would check with your mortgage company about that - it seems like a great thing when buying a fixer upper.

Re: House Purchasing and Remodeling Options- Help

There is one type of loan that we had thought about I believe it was a 403B loan. When we got our house we were debating between our home (which we though was in need of only a few things) and a total fixer upper, in the end we didn't go with the fixer, and I am sooooo grateful that we didn't. The few minor things (new floors, paint, new fixtures, ect.) ended up being a lot of work, and more expensive than I thought even though we did all the work ourselves. A fixer upper sounds like a great idea but it is very easy to get in over your head. You need a lot of patience and be able to accept that you may not be able to live there for a while when you are remodeling if it is that extensive.

Re: House Purchasing and Remodeling Options- Help

Yes you can get what's called a 203k rehab loan thru fha

There is also a 203b but that is for work under $15k

I have a great guy a contineal that does these- we are closing on one tuesday- house was $175k on a double lot in east rockaway- the buyer is taking out $103k for renovations. Turning the house from a 1 bedroom to a 3 bedroom and redoing everything!

Be aware- they take much longer to close- you need to get everything approved first- everyone has to be lic and insured but it's a great loan process (I sold this house in decemeber- so almost 4 months to close but I would say 2.5/3 is the average)

Not every house will quailfy for this type of loan- this is not meant to just upgrade but fix issues like heating and plumbing

I sell foreclosures so every house I don't sell for cash needs this type of loan

Re: House Purchasing and Remodeling Options- Help

thanks girls for responding- its good to know because I really know nothing about that type of stuff

Will look into it more if we choose that route