re: The math for buying a home no longer works, per WSJ

quote:

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Most FTHB don’t have the funds lying around liquid to buy a house and then dump 20-30k into renovations.



Are you aware that there are mortgage products made specifically to address this issue?


quote:
Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.



HUD

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Like I said, it still isn't free. And on top of that, a 203k doesn't really fit your sweat equity point because you have to hire contractors to do the work acccording to the rules and guidelines of the loan. Fundamentally, you're just borrowing additional money. It's also, by definition, a loan. You'll be paying all of those renovation costs back to the lender, with interest.


You also better hope you pick a good contractor who doesn't bail in the middle of the job or that your lender is very much on the ball. It's a lot of moving parts to keep track of and if any of them go wrong, you can end up in a bad spot.


Not to mention closing can take longer and you'll have to pay insurance on the loan as well. I'm not saying it's impossible, but it's not as nickel and dime to do as maybe is portrayed.