Real Estate

Published on March 1st, 2011 | by Genevieve Williams

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I would buy a “fixer-upper”, but don’t have the money to fix it up!

Everyone knows that when you buy the home with all the updates you pay more. Very often buyers fall in with a certain neighborhood, but cannot afford the home with all the updates. So then they look at some of the homes that need a face-lift or are fixer-uppers. More often than not they realize that to be able to do the updates or renovations they would like they need too much cash out of pocket than what they have.

One option for these buyers is the 203k Loan, which is a loan made on the value of what the home would be with the updates made. For instance, you found a home in a great neighborhood, but it needed extensive work; more than just a couple thousand dollars worth of work. Lets just say you can get it for $200,000 and it needs $30,000 worth of work. Well, with the 203k Loan the bank would loan you $230,000: $200,000 to purchase the home and $30,000 to hire a contractor to fix it up. Even better is that there is an FHA 203k Loan, which means that you only have to put down 3.5%!

So, you want the details

What can be done?

  • Repair/replacement of roofs, gutters and downspouts
  • Repair/replacement/upgrade existing HVAC systems
  • Repair/replacement/upgrade plumbing and electrical systems
  • Repair/replacement flooring
  • Minor remodeling, such as kitchens, which does not involve structural repairs
  • Painting, exterior and/or interior
  • Weatherization, including storm windows and doors, insulations, weather stripping, etc.
  • Purchase and installation of appliances, including free-standing ranges, refrigerators, washer/dryers, dishwashers and microwave ovens.
  • Accessibility improvements for person with disabilities
  • Septic system and/or well repair and/or replacement
  • Other minor remodeling

What can’t be done?

  • Major rehabilitation or major remodeling, such as the relocation of a wall
  • New construction
  • Repair of structural damage
  • Repairs requiring detailed drawings, plans or architectural exhibits
  • Landscaping
  • Pool improvements/repair
  • Anything taking longer than 3 months to complete

So go ahead and buy that fixer-upper in the neighborhood your love!

Oh, and here is the perfect Chantilly Fixer Upper…


About the Author

For my clients, the best thing I can give them is my undivided attention as well as trying to make the process as smooth as possible for them. Their wishes, wants, and needs are the most important part of the real estate process and my job is to listen, but to also make it fun and enjoyable for them. Buying, selling or investing in a home can be hard. I enjoy guiding my clients through the process, being the expert they need and answering all of the questions they have.



One Response to I would buy a “fixer-upper”, but don’t have the money to fix it up!

  1. Great information!! I know a lot of people want that house that needs a facelift… or a little lipo.. and don’t know how to fund it. Thanks for spreading the word.

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