There are loan programs out there that can give you cash to work on fixer uppers. The main one is called a 203k loan. It is an FHA loan. It works on a couple of levels. You will need to have an appraisal done to see what the current value is like any purchase loan, but then you will also get one done to see how much the home will be worth once all of the improvements are done. You will need to get estimates from a contractor to see how much the repairs will cost. The loan will then fund in multiple parts. It will initially fund to pay for the purchase price. Then once the work is done by a certain contractor, that money will be released to pay that contractor. It is a process, but it can be a good loan if that is something you are looking for.
I would be a first time home buyer of a home that was hopefully structurally sound but in need of major cosmetic work inside and out (with the price commensurating). I would be the occupant, doing the work for myself, not to flip. My credit is very high. I can probably find a job in interior design in the Carolinas, as most of the furniture I sold came from there anyway. My questions are: do you have to pay for a "fixer-upper" in full (cashier's check)? Are their loans for fixing it up and if so, are their requirements for a time frame in which to complete it? Can you hire an inspector for fixer-uppers, short sales, foreclosures before the sale is made?
My former neighbors were nice but lived very "green". They purchased a wonderful home that they initially intended to fix up. Instead, they let it go categorically. They did not believe in using a lawn mower (fumes were "bad for the environment) and resorted to using a sickle (and only occaisionally). They refused to power wash or remove the 70's aluminim siding (claiming it would leak lead into the water basin and poison neighbors). They refused to get rid of insects such as termites, saying the toxic chemicals would harm everyone. The house and property were so bad, all the neighbors banned together and had it condemed but I didn't get involved in that. The town told them they have 90 days to completely renovate the house and replace the yard or they will lose the house (I didn't know that was possible). The same goes for anyone that purchases it if they choose to let it go. My concern with purchasing a home in need of significant repairs is finding that there are additional or more severe (expensive) repairs to be made that may render the property inhabitable. I would imagine if so, I would live elsewhere but that just adds to the expense. I do know how to do significant work and I am sure if I lived there for some time, I would meet professionals to hire to move it along. I just wouldn't want to get over my head with the unforeseen tasks that could appear after the purchase.
The most important thing is to make sure that your credit score is as high as you can get it. 640 is about as low as most lenders go, although there are some that go down to 600. You generally need 2 years of work history, although if you took a relatively short time off work for certain things and then start work again doing the same or similar type of work, your prior employment can count as that two years. If you contact through profile, I can give info about lenders that can help you. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
A lot has to do with the job history more than your current employment. If you are lookign to buy a home with an FHA loan they like to see 2 year work history with no more than a 30 day gap. They do count full time student as part fo the criteria. Then if you are in the same line of work they genrally want at least 30 days on the job. if you are in a whole new career they can ask for 6 months.
Most places on a conventional loan are goign to ask for 30 to 60 days on the current job unless you have a large gap in employemtn over the past two years.... If you were not working to take care of your mother you may be able to get around it.... It si a little tricky
Coldwell Banker United
The guidelines have more to do with how long you have been at the same type of job. If it is a new industry for you, two years is generally the rule. However, if you have recently finished school and you are working in a field related to your course of study and can provide transcripts, the two year requirement is waived. You would also have to have employment or promise (with proper documentation) of employment here in order to buy before or at the same time you move.
I'm not a mortgage professional and guidelines frequently change, but that has been the experience of my clients.
If you don't have two years of full time work history, you most likely would have to wait those two years. It would be a good idea to speak with a mortgage professional when you find a job, so that you will know what you are working for and what the best plan of action is going forward.
I'm sorry to hear about your mom. North Carolina is a wonderful place to live and work! Good luck!