Financing a fixer upper in Northern Virginia requires advance strategic planning. If you’re thinking of buying a fixer-upper and you’re not in a position to pay cash, there are a few main options you should consider. First, you should think twice about trying to use a regular FHA loan or a VA loan, since both of these types of loans have appraisal inspections that are stricter than conventional loan appraisal inspections. A VA or FHA appraiser is more likely to flag certain basic living issue or safety issues with a fixer-upper.
Financing a Fixer Upper – The Best Loan Options
Overall, a conventional loan option or the FHA 203K are overall better loan options for fixer-uppers. With an FHA 203K loan, the bank gives you a loan on the property, but also gives you an extra loan that goes toward home renovation.
Learn about financing a fixer upper by paying all cash
One thing to consider with financing a fixer upper is that conventional loans have different credit and debt-to-income requirements, which can affect the loan amount and terms that you qualify for with this type of financing. It really depends on your own specific credit score and financial situation, and you should explore this fully with your lender. This is why it’s so important to get pre-approved early on in your home search process. Also, with a conventional loan, you’ll have to self-finance the home renovations on your fixer-upper purchase.
Read Part 2 of my blog series on financing a fixer upper in Northern Virginia.
Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com for a list of the top 5 fixer-upper deals in the Northern Virginia area of your choice!