How do you finance a fixer upper?

Asked by Mrsjoseph06, California Tue May 21, 2013

So here is the deal my husband and I are trying to buy our first home. He has worked construction for over 5 years as a general contractors foreman. So we are looking for a fixer upper. But the problem is the financing it seems like anything that needs work the banks do not want to finance or if they do you have to add to your loan the costs of the repairs. We also have to have a co-signer for our loan as well because he has less than one year of work history. Any thoughts?

Help the community by answering this question:

+ web reference
Web reference:


Candace Deck…, Agent, Johnsburg, IL
Sun Oct 27, 2013

There are different programs that you may be qualified for. I have a great lender that can explain all of the avenues. Email me at


1 vote
Dana Lindberg, Both Buyer And Seller, Phoenix, AZ
Sun Oct 20, 2013
Buy a fixer-upper, as is, or a foreclosure with FHA 203k loan and turn it into your dream home. For more details about 203k loan, visit CFS Mortgage and RenovationReady brings together more than 50 years of traditional and renovation lending know-how.
1 vote
Mike Lombardo, Agent, Cape Coral, FL
Mon Jul 1, 2013
That can definitely be a frustrating situation. Call Kim Martini at Cape Coral Mortgage. Cape Coral Mortgage has done some financing miracles for me in the past. I've seen them find ways to get financing for situations much more difficult than yours. I'm sure they'll be able to help you. You can reach them at 239-540- 5555. Let me know if there's anything else I can help you with.

Good luck,

Mike Lombardo
Web Reference:
1 vote
Terence Trom…, Agent, Cape Coral, FL
Wed May 22, 2013
There are finance options for you, but you will need to speak with a lender directly about getting pre-approved. Below are three GREAT finance professionals I highly recommend.

Please contact me for your Real Estate services. I go beyond the conventional expectations of my customers by locating the perfect property that fits your needs, negotiating the best deal possible and protecting your interests every step of the way. Call me and lets talk about how I can help you find a house you will love.


Terence Trombetti • Realtor®
Gulf Coast Realty Network
4002 Del Prado Blvd. S.
Cape Coral, FL 33904
Mobile 239.560.1574


Kim Martini
Cape Coral Mortgage Company
Direct: (239) 540-5555

Jane Wingate
Gulf Coast Mortgage
Direct: (239) 263-9921

Anthony Ottaway
Executive Purchase Banker
Direct: (313) 373-1548

*Contact me for a current list of active properties that fit your needs. Conventional, foreclosure and short sales. All properties I send come directly from the Realtor's MLS system and therefore are real-time current information, only active and available homes.

See my customer testimonials here:

**If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks.
1 vote
, ,
Sun Oct 27, 2013
No lender will finance a house that is missing major components or is unsafe. There is no way around that.

You will need to purchase with cash or private money.

FHA has a program called 203k, that, with restrictions, will allow you to finance the rehab of the property into the new loan.

Ray Stevens
239 313 1003
0 votes
If the kitchen is intact but just old, that is fine. If cabinets are missing, toilet is broken, windows broken, etc., that will need to be fixed. This is an FHA, Fannie Mae, Freddie Mac and VA underwriting guideline.
Flag Sun Oct 27, 2013
Robert Guth, Agent, Cape Coral, FL
Fri Jul 5, 2013
You may want to explore an FHA 203k loan, which is an FHA mortgage loan that allows you to finance renovation expenses. Unless you have at least 20% down, and your own fix up money, this is probably your best option. Now, USDA has a similar program, but you are restricted by the area. Your best bet is to call me. With me on your side, you will absolutely know your parameters. No guessing, no "I think you can do that", no "sorry, I thought that would work".

Robert Guth
"The hardest working man in real estate"
Cell Phone: 239-770-6741
Office Phone: 239-274-6637 EXT 3060
Office Fax: 239-225-0086
Federally Licensed Mortgage broker (NMLS: 325469)
0 votes
Mrsjoseph06, Home Buyer, California
Wed May 22, 2013

Yes he has 5 years experience however he has not had work for the past 3 years due to the economy. So the mortgage lady said we had to have a cosigners
0 votes
Most likely you would. I would think that would of be difficult. The only think you have going for you, he is capable of fixing the place up, and if you have cash, buy with cash, Hard to get any loan without showing you able to carry the loan.
Flag Mon Oct 21, 2013
Ronald Wolch…, Agent, Fort Myers, FL
Tue May 21, 2013
I am a little confuse. Your husband has 5 year plus years as a general contractor foreman but can show 1 year of work history?

It not true, banks do offers streamline loans, and yes they get piggy back on top of your loan amount. It is a good program consider today's interest rates. Your loan max amount to fix up, would be max, 35,000 for 30 years, which amount to peanuts per month..

You do not need to co-signed. You said he has 5 years of history. He can file for those years and now he does not need a co-signers, and if e bank does grant a streamline, / K203 loan, he wont be able to do he work anyhow because it has to be done by a license contractor.

There are a lot of answers for you. A HUD home can be one. Funding by Private investment is another, or, file for the years worked and not accounted for with the IRS.

Hope this helps. Good luck

My Best Always,

Ronald Wolchesky
Ron (Realtor Ron W) Wolchesky
License in Florida
Home: 239-349-4684
Cell: 239-209-1923
0 votes
Sarah Garrett, Agent, Fort Myers, FL
Tue May 21, 2013
I've always been one of those "the glass is half full" type of people. Since you will have someone else helping you with achieving a loan as a co-signer is very helpful. A 203 FHA loan will help with most of the Fannie Mae foreclosures being offered. These are done through Once you have your pre-approval then I can help you look at all the homes they offer. Please call me when you have a chance. 239-464-8620

Sarah Garrett, Realtor
"Chosen Best in Client Satisfaction 2006-2012" by Gulfshore Life Magazine
Web Access to MLS:
0 votes
Rick LaVan, Agent, Fort Myers, FL
Tue May 21, 2013
You can get an FHA 203K Loan
Call me and I can give you more details.
0 votes
Carolyn Gian…, , Cape Coral, FL
Tue May 21, 2013
Sorry to say but this is how it is. The people buying the fixer uppers and distressed properties are the investors who can pay cash. The only other way you can go with this is to find a property that the seller outright owns and is willing to finance for you. Problem with this is you will have to pay more than the property will appraise for and usually at a few points above the going bank APR. But once you have fixed it up and it will appraise and pass a banks inspection, then you can refinance with a bank at a normal rate.
Good Luck.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more