As I meet potential clients, the first thing they say to me is "I want to buy, but I need to fix my credit". This is all too common with first time home buyers, so I figured I'd share some of my own
Fixer Upper VS Turn Key
When I meet with prospective home buyers, I always get the question, "Should we consider a fixer upper over move-in ready to save money?" There is never a simple answer to this question. Of course it all depends on the individual situation. Every buyer has different wants and needs as well as access to resources. Always speak with a real estate professional to weigh your options and make the best decision.
If you have time and resources available to put into a fixer upper, this may be the better option for you. Especially in a low inventory market. Currently in the Baltimore Metropolitan area, turn-key inventory is low. In a situation such as this, a fixer upper may be the better option. It allows you to purchase property possibly at a lower price and renovate it to your liking.
The idea of a fixer upper can get overwhelming! Especially when you start to add up the cost of renovations. Most buyers don't even consider this option because they assume they need cash on hand to pay for the updates. This is not always the case. There are a number of loan programs available to finance the purchase of the property as well as the renovations.
With a renovation loan, a home buyer finances the home purchase price plus the cost of repairs
There are 18 renovation programs available (subject to lender approval)
FNMA Pool Escrow Program
EZ "C" Conventional Escrow
FHA Buyer/Seller Funded
FHA Weather Related
Minimum Property Required Repair Program
Conventional Buyer/Seller Funded
FNMA Weather Related
Jumbo Pool Program
USDA Buyer/Seller Funded
USDA Repair Escrow
USDA Weather Related
VA Seller Funded
VA Weather Related
As always, loan programs and terms are subject to lender approval. Please consult with a licensed real estate professional and lender to determine your available options.
Alonna Gordon is a licensed Real Estate Agent based in Maryland. Alonna's background in sales, customer service, marketing and management is a tremendous asset to her clients. She gives constant ener....