Question:
“Is it possible to get a loan on a fixer-upper house?”
Answer:
It depends on the condition.
Conventional Loans
If the house needs cosmetics and/or miscellaneous minor to moderate repairs, you can probably get a regular “conventional” mortgage.
Purchase/Renovation Loans
If it needs more than that, you could possibly get a rehab/purchase loan. These loans can be complicated and take more time. Here are a few options:
- FHA 203K rehab loan
- Wells Fargo Renovation Loan
- HomePath Renovation Mortgage (only available on some Fannie Mae foreclosures and San Diego has VERY few foreclosures now)
Hard Money Loans
If the house is really bad, your only option may be a “hard money” loan.
Hard money doesn’t mean that they’ll break your kneecaps if you don’t pay the loan back, but it will cost you an arm and a leg to get the loan!
They usually cost 5-10 points (5-10% of the loan) up front and have rates of 8% into the teens.
