“Question. I want to buy a fixer upper house so I can fix and sell it for a profit (hopefully!). Is there any difficulty getting a loan on a fixer?”
Answer:
Great question.
If a home is in poor condition, you may have trouble getting a conventional loan. (An FHA or VA loan would be even less likely.)
This is because the appraiser notes any major or key defects and the loan underwriter likely will require that they be repaired in order to make the loan.
Since that probably won’t be an option for you, here are your options for financing a heavy fixer home:
1. Cash
2. FHA 203K rehab loan
3. Wells Fargo rehab loan
4. Homepath or Homepath renovation loan
5. Hard money
6. Owner carry (meaning the owner acts as the bank)
Let us know if you’d like our help. We’ve found many clients great (terrible?) fixer uppers.
