- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Buying a fixer upper for first home
Posted on 6/16/21 at 3:07 pm
Posted on 6/16/21 at 3:07 pm
Lets say I am buying a home for $350,000 that is completely outdated and would like to put $100,000 into it. How do you finance the $100,000? Can you roll it into your 30 year mortgage or do you have to get a separate loan for that?
I can put 20% down on the $350,000 but don't how to finance upgrades? I wouldn't be able to afford cash payment for the upgrades.
I can put 20% down on the $350,000 but don't how to finance upgrades? I wouldn't be able to afford cash payment for the upgrades.
This post was edited on 6/16/21 at 4:17 pm
6
Posted on 6/16/21 at 3:14 pm to thadcastle
There are loans that include funds for construction but you typically have to itemize the construction portion of it beforehand.
Posted on 6/16/21 at 3:18 pm to thadcastle
Wait, you want to buy something for 350k as a starter home, and also borrow another 100k to fix it up?
So 450k for a first home and you need to borrow all of it. I'm going with you don't. I would need a lot more info to think this is a good idea.
Maybe start with a 250k and cash flow the work.
So 450k for a first home and you need to borrow all of it. I'm going with you don't. I would need a lot more info to think this is a good idea.
Maybe start with a 250k and cash flow the work.
Posted on 6/16/21 at 3:19 pm to thadcastle
Mortgage company shouldn't write you a traditional mortgage for more than the home will appraise for.
You can get a renovation loan that combines the home price and reno cost, and it'll have a higher interest rate since there's more risk to the lender.
You can get a renovation loan that combines the home price and reno cost, and it'll have a higher interest rate since there's more risk to the lender.
Posted on 6/16/21 at 3:21 pm to UpstairsComputer
quote:
So 450k for a first home and you need to borrow all of it
I took his numbers to be just a random example. OP, if you're about to borrow $450k with nothing down for a fixer upper, you need to rethink that shite.
Posted on 6/16/21 at 3:23 pm to thadcastle
Lookup the FHA 203(k)loan. It’s for purchasing and rehab/renovating a property.
Posted on 6/16/21 at 3:45 pm to VABuckeye
quote:
VABuckeye
Any idea how the rate compares to a traditional mortgage?
Posted on 6/16/21 at 7:11 pm to UpstairsComputer
quote:
Maybe start with a 250k and cash flow the work.
This
Posted on 6/16/21 at 8:27 pm to thadcastle
Like VA said it’s a 203k. If you have never done this before & this will be your primary residence my advice is hire a project manager on the first one and pay him to oversee the project.
Posted on 6/17/21 at 5:40 am to thadcastle
There’s also a Homestyle loan that is a conventional mortgage if you can afford to put at least 5% down. That way PMI isn’t for life of loan like FHA
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News