It takes a special person to see the potential in a home that’s in need of serious rehab. If you’ve got your heart set on buying a dream fixer-upper — but don’t have the savings to cover both a down payment and a renovation — there are loan products out there that could help you make your dream a reality.
Consider a loan with a built-in reserve
The Federal Housing Administration (FHA) 203(k) rehabilitation loan or Fannie Mae HomeStyle Renovation Mortgage could be good financing options for buyers seeking fixer-uppers. These loans allow you to purchase the home with a reserve that’s put in escrow to fund renovations. Continue reading “Want a Fixer Upper? This Mortgage Is for You”