When financing a fixer upper in Northern Virginia, it’s important to think ahead and go over your options. This is the second article in a blog series on this topic – You can read Part 1 here.
Financing a Fixer Upper – Your Choice of Lender Becomes Even More Important
Your lender will be able to go through each loan option and give you several scenarios for what the best choice would be. They’ll also be able to give you all the specifics regarding how much of your potential reserve income and overtime income with your job that he can use on the loan.
When you’re thinking of financing a fixer upper, your choice of mortgage lender becomes even more important, since you need to work with someone who has a solid grasp on how all of these moving parts can affect your loan, and which loan option would be best for your needs.
The other thing to consider when financing a fixer upper is how much work is required to get the property up to condition that you want before you move in. With a conventional loan, you’d have to use your cash for the improvements, whereas with an FHA 203K, you could wrap the improvement cash into your loan amount. However, with an FHA 203K, you would need to bring a 3.5% down payment. If you decided to go with that option, you could always just ask for a seller subsidy toward your closing costs, and then use your cash for the down payment.
Your mortgage lender will help you consider all of your options for financing a fixer upper, and which one would work best. I think it’s always great to consider fixer upper properties, as they’re an easy way to have instant equity in a home by know that just renovating it would substantially increase the property’s value.
Are you thinking of buying a property that needs some work and you’d like to learn more about financing a fixer upper? Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com and I can help you develop the right strategy for you!