Feb
27

Buying handyman specials?

Question by (mimi): House buying?
Lets say you want to buy a house, but  it needs some repairs and don’t have the money for them…… if you get a  loan from a  credit union will they only give you the loan for the amount of the home? I’ve seen those house flipping shows where the person buys a home and they fix it up, but do they get a loan to fix the home on top of the loan to buy the home?

Best answer:

Answer by tim

You should make sure your contract offer is contingent on a satisfactory appraisal.

For example, you submit a contract for some value, it could be the asking price or some value less that that. You should make the contract contingent on the house  appraising for at least equal  to your offer. You should also make the contract contingent on a home inspection, by a professional inspector to identify that there are no major problems in the property such as plumbing, heating and cooling,  and so on. If the house doesn’t pass the inspection, you can ether cancel the contract or try to negotiate a resonable compromise with the seller. 

Know better? Leave your own answer in the comments!

About Kristofer Nance

Kristofer Nance, Real Estate Broker with Nance & Associates, Realtors in Fredericksburg VA
Owner/Agent of Nance & Associates, Insurance.

Comments

  1. Some lenders will offer loans for more than 100% of the appraised value of the home, but your interest rate on that type of loan is likely to be higher than a more traditional loan. If you are solely interested in flipping the property, you could also look into an “interest only” loan. You don’t get any closer to owning the house, you just pay interest, but this can be a way to keep your mortgage payments down while you upgrade the house and create new value in the house. I’d just caution you to know what repairs will really be necessary and have an idea of their costs. Good luck.

Speak Your Mind