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A fixer-upper is a viable option for aspiring real estate investors because it has a lower purchase price. With this, you can allocate funds into renovating the property to improve its curb appeal and market value. You have to be extra conscientious when looking at potential homes or buildings, though, so that you don’t end up paying more for renovations.
Please don’t avoid Boston condos for sale “fixer-uppers”. If you are a new Boston North End condo buyer just starting your home search or someone who has been looking for that perfect home but you haven’t been able to find something that checks all the boxes on your wish list, you shouldn’t avoid Boston condo fixer-uppers.
Everyone has seen a show or two on TV where they make it look so easy for someone to purchase Boston real estate in need of repairs and renovations and then build those repair costs into their budget to create their dream home. Is the process really that simple? The answer is…sort of.
Financing Options
When it comes to purchasing and renovating a Boston condo for sale, there are a few financing options available to accomplish this goal. The most popular of these products are referred to as an FHA 203K loan or a Fannie Mae Homestyle renovation loan. With either of these renovation specific home loans, a potential North End condo home buyer is able to combine the purchase price of the home and the improvement cost into one loan.
Difference between a Renovation Loan & Home Loan
The biggest difference between a renovation loan and a standard home loan is identifying the proposed renovations and accurately calculating the costs to do so. For this, a good general contractor is needed. Their job is to take a look at the Boston condo as early in the process as possible so that they can provide a detailed estimate for the renovations you want to make to the property. This is what we use to determine the overall loan amount for your new purchase.
Bottom Line
The bottom line is- As a future home buyer, remember that you have options, especially if you’ve found a house that’s not picture perfect, but the location is exactly what you had in mind.
