Finding the Right Financing Options for Your Fixer-Upper
Introduction
Buying a fixer-upper can be an exciting and rewarding investment‚ but it can also come with its fair share of challenges. One of the main hurdles that potential buyers face is finding the right financing options to make their dream of owning a fixer-upper a reality. Fortunately‚ there are several financing solutions available that can help you turn a run-down property into your dream home. In this article‚ we will explore some of the popular fixer-upper financing options and how to make them work for you.
1. Traditional Home Loan with Renovation Escrow
One of the most common financing options for fixer-uppers is a traditional home loan that includes a renovation escrow. This type of loan allows you to combine the purchase price of the property with the funds needed for renovations. The lender will set aside the renovation funds in an escrow account‚ which will be released in predetermined increments as the renovation work progresses.