Darren Orshoff

The Key To Your Home!™ All Things Real Estate

  • Home
  • About
    • About Darren
    • Reviews on Zillow
  • Blog
  • Buyer/Seller Info
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
  • Contact

Archives for June 9, 2022

Use A Fixer-Upper Mortgage To Expand Your Options

June 9, 2022 by Darren Orshoff

Use A Fixer-Upper Mortgage To Expand Your Options

Many people purchasing a home for the first time are running into the same problem. There simply are not enough starter or entry-level houses available in the current market that are ready for people to move into. One solution some home buyers are exploring is to buy a fixer-upper home. With a home renovation mortgage, prospective homebuyers can qualify for a home loan that combines the cost of home improvements with the purchase price of the house.

A Lack Of Affordable Homes

Regardless of whether they are brand new or resale homes, there simply are not enough affordable homes for first-time homebuyers. A significant number of new houses are built for people who are looking to purchase their second or third home. Furthermore, because there is a lot of demand for affordable entry-level houses, their prices have gone up. This makes it very difficult for first-time homebuyers to qualify for a mortgage for an entry-level home. 

Consider Fixing Up An Existing Home

With a lack of affordable homes, it only makes sense for first-time homebuyers to consider buying and repairing entry-level homes that might be in need of repair. Because a lot of people do not want to purchase a house that requires repairs, first-time homebuyers might be able to save money by going this route. 

There are two separate home renovation loans available. The first is the FHA 203k loan, which is insured by the Federal Housing Administration. The other option is guaranteed by Fannie Mae, and it is called the HomeStyle loan. These loans can cover the cost of most home improvements, regardless of how large or small they might be. Both of these loans can be used to cover cosmetic and structural renovations. With access to this loan, it is possible for first-time homebuyers to begin work immediately after the closing process is done. 

Consider Taking Out A Home Renovation Loan

The FHA 203k is for primary residences only. The Fannie Mae HomeStyle loan can be used for either a primary residence or an investment property. They require a minimum credit score of 620 and a down payment of at least three percent. These loans could make it easier for first-time homebuyers to afford a house. 

 

Filed Under: Real Estate Tagged With: Real Estate, Refinance, Renovation Loan

Darren Orshoff

Contact Darren


REALTOR®
CALL (951) 323-2119
darren@darrenorshoff.com
CalBRE # 01803671
Logo

Connect with Me!

Let’s Keep In Touch!

  • This field is for validation purposes and should be left unchanged.

June 2022
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
27282930  
« May   Jul »

Looking For Something?

Categories

NMLS# 235872 with Loan Depot.
231 E. Alessandro Boulevard, STE A-101
Riverside, CA 92508

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in