John Lawrence

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Deciding On A Mortgage For Buying A Fixer Upper

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Deciding On A Mortgage For Buying A Fixer UpperIt can be difficult to find a dream house, so many potential homeowners might be looking to save money by purchasing a home that they need to repair. Often referred to as a fixer-upper, this is a house that may require some extra work to restore to a livable condition. Not only is this a great opportunity to customize a home, but it could also be a valuable investment. At the same time, homeowners need to take out enough money to not only purchase the house but also cover the cost of repairs. How can potential homeowners decide what loan is best for a fixer-upper? There are a few options available. 

Consider Taking Out An FHA 203(k) Mortgage

One option is something called an FHA 203(k) mortgage. This is a loan from the Federal Housing Administration that has been specifically designed to help potential homeowners who are purchasing a house that needs a significant amount of repairs. As long as the cost of the home and the estimated repairs do not exceed 110 percent of the appraised value of the home, homeowners should be able to take out this type of loan.

Borrowers have to put down at least 3.5 percent and they need to have a minimum credit score of 580. Then, applicants can place themselves in a position to get approved for this loan. Keep in mind that the total cost of the property has to be less than the FHA mortgage limit for that local area. 

Look At A Fannie Mae HomeStyle Renovation Mortgage

Another option to consider is called the Fannie Mae HomeStyle Renovation Mortgage. This is a great option if the house requires major renovations. Borrowers can borrow money to cover potential repairs that are as high as half of the appraised value of the property. This could include energy efficiency enhancements, remodeling work, and repairs. As long as the repairs increase the value of the home, they should be covered by this mortgage. The loan will cover the cost of getting permits, hiring an architect, and purchasing materials. Even though this mortgage may be a bit more competitive, it also has a higher borrowing limit, opening more doors for homeowners.

Working From Home Could Mean A New Home

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Working From Home Could Mean A New HomeThere are a lot of people who are working from home for the first time. There are a lot of advantages that come with working from home, such as the opportunity to develop stronger relationships with family members, the chance to save money on gas, and more autonomy over the work schedule. In addition, this could also mean a new home.

With many people spending more time at home than they did in the past, they might be thinking about investing in new floorplans, renovating cabinets, and adding a dedicated home office. This could also provide the opportunity to move.

Why People Are Thinking About Upgrading Their Homes

For those who continue to commute to work, they might not spend that much time in their homes. As a result, they may not be that invested in the overall layout of the home. As long as the home meets their needs when they are present, this is enough.

On the other hand, when people work from home, their needs change. For example, many people have their kids home from school right now. Their kids might distract them when they are trying to work. By renovating the home and creating a dedicated space for a home office, this could allow someone to be more productive. Renovating the home is about meeting people’s needs as they change.

The Prospect Of Moving Entirely

On the other hand, some people might be thinking about moving to a new home entirely. The vast majority of people end up purchasing a new home because they have recently obtained a new job and need to live close to work. When someone works from home, they can live just about anywhere they choose. While many people still choose to live relatively close to their current location, working from home provides people with more flexibility than they had in the past. Therefore, many families are taking advantage of it.

Working From Home Will Become More Common

In the future, working from home is going to become more common. As technology continues to improve, people are going to have the opportunity to work from home for the foreseeable future. This represents a lifestyle shift that many people are going to embrace.

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