This question was posted 3 years ago.


Douglas Lagos
Realtor, Certified HAFA Specialist (CHS)
Coldwell Banker Residential

consider "less of a 'fixer' for now..
i have a 3bedroom 2bath Penthouse in your price range...2 years old; 1580 sq ft; upscale luxury development; every amenity you can name...NO FIXING for at least 5 years--just move in!

I was considering buying a fixer and this person helped me a lot with explaining how the 203K loans work and he can also get one for you. He specializes in this type of loan and is an expert. I would talk to him. As far as I know that is the only way in today's market to get extra money wrapped into a loan for fixing.

http://www.marvinloans.com/

Dear Kelly,
You might have to live in the property while renovations are being done. This is difficult, but not impossible.
Repair the things you absolutely must have done first (kitchens and bathrooms). Other things like removing old built up paint etc. can be done slowly. A lovely architectural property will bring a good return on investment once it is restored.

Dear Kelly,

First, let me congratulate you on making a decision to buy. It's a GREAT time to buy, and you will certainly be thanking yourself down the line for making such a savvy investment decision.

Regarding financing, I have found that many buyers look to their Realtors for lending and financing advice. I believe that this causes many miscommunications and misunderstandings. While Realtors certainly have lots of experience in these matters, they are not technically trained to handle and answer your questions. For this reason, I have worked very hard to establish a solid working relationship with a Direct FHA Lender and as a result, have a dedicated representative at the Lender. My dedicated rep treats my clients with the utmost care and concern and makes himself available for them around the clock. I also have a very close working relationship with a home decorator who is a licensed contractor and offers estimates and consultations.

Please feel free to contact my rep at the Lender, whose information I have provided below. Make sure you let him know that you are a Crestico Realty referral so that I can personally guarantee the level of customer service you receive.

Houtan Hormozian
American Guardian Home Loans
(949)242-5215
hhormozian@amguardian.com

Should you have any other questions or need further help in your home search, please feel free to peruse Crestico's website and contact us directly, so that we may help you.

The type of loan you're looking into is a renovation loan. There are even FHA renovation loans, although the max for these types of loans varies depending on your location, but that only requires 3.5% down. It's called a 203K. I just had a buyer use one of these loans, and I learned a bit in the process, so you might want to read the referenced blog post to become a bit more educated. Even if you decide to skip the FHA and go with a conventional renovation loan (I hear Bank of America has some good products), maybe some of the things pointed out in that blog will help you think of questions to ask in advance.

Good luck!

It sounds like the mortgage described below is a good idea.

If you have not already had your inspection done, let me know. I can give you a basic idea of the major problems. If you have already had an inspection but need estimates on repairs, I can connect you with a great contractor who can give you an estimate of work to be done.

Kelly,

I agree with Jeffrey below. There are mortgages that will cover repairs. You should definitely check that out in addition to aggressively negotiating the purchase price of the home.

Please contact me for additional information.

Lezlie Brazil
Keller Williams Realty
T 310-991-4263
F 310-861-0207
E lezliebrazil@kw.com

Thanks for your question! I would contact a reputable mortgage broker and see if you can qualify for a loan including improvements. I recommend rick who is on my website below. I would verify this and then proceed based on your true ability to qualify.