One of the many questions people ask before they begin house hunting is whether or not they should buy a fixer upper.
While they’re not for everyone, there are several advantages to buying such a home. They include:
Lower Mortgage Payment
A fixer upper typically costs less than a home that is move-in ready or in need of only a few minor repairs. This means a lower mortgage payment, and what you save on the monthly premium can be used to make improvements.
Ability to Afford a Better Neighborhood
If there is a neighborhood that you have always wanted to call home but the homes are out of your price range, purchasing a fixer upper may allow you to do so.
Make It Your Own
It’s no secret that a fixer upper is often a lot of work. But it’s worth the time and effort as you can get exactly what you want. Buying a home for a lower selling price should allow you to have extra funds for things such as new floors and windows, replacing appliances, or even tearing down a wall or two.
After improving your home by making sound decisions, the value of your home will rise to the value of other properties in your neighborhood. Don’t remove a bedroom or bathroom without first asking a real estate agent. It can negatively affect the value of your home.
FHA 203k Loan
Those who purchase a fixer upper may qualify for a FHA 203k loan which is designed to help borrowers finance an older property that is in need of considerable improvements.