Do you really want your dream house but don’t think you can afford it? We completely understand what that’s like because we help people every day who are in your predicament.
The truth is that you probably can afford a house. But maybe you need to consider a different type of house — a fixer upper.
Before you turn away from this article because you don’t believe a fixer upper is for you, read it through. You’ll soon see that this type of house may actually be the best way to get into your dream home.
When you buy a fixer upper, you are purchasing a house that needs repairs. Since the house requires repairs, the price of it will likely be lower than the comps for the rest of the neighborhood. This is great for you because you could end up getting a house that has the potential to be worth much more than what you pay for it.
The biggest concern people have when they consider fixer uppers is that they don’t have enough money to cover the repairs. While this is a valid concern, there are finance options that can help … enter the 203(k).
The 203(k) loan is specifically for people who want to buy a house that needs repairs. The loan not only covers the cost of purchasing the house, but it also covers the repairs up to $35,000. This is a lot of money to put towards home improvements.
Why Using a 203(k) Is a Great Way to Get a Deal on a House
A 203(k) is a great way to get a deal on a house because you can purchase one for much less than it would sell for if it were in perfect condition. In addition, after the repairs are complete, the value of the house likely will be more than you paid for it, meaning, you can potentially have equity right away. As you pay off the 203(k), you will see that equity increase.
So if you’re struggling to figure out a way to own a home, consider a fixer upper. Primary Residential Mortgage is here to help.