Zillow Advice: Investing - First Time Buyer wants a fixer upper http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ Zillow Advice | Zillow Real Estate I have found that many times ... http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ I have found that many times the people who fare best in renovation projects, in terms of staying on a tight budget are people like yourself who have connections to labor, have a deep interest in having something original, and are willing to do work themselves. And....tend to not have 'dependents' waiting around.<br/><br/>There are a whole list of caveats. Find a good buyer's agent so you get the right property, but if your interest is as strong as you write, and your family is truly willing to get involved, then your buyer's agent will connect you with the mortgage person and the house. <br/><br/>Go for it! Fri, 09 Mar 2012 07:41:00 GMT http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ 2012-03-09T07:41:00Z As to the ways that you can ... http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ As to the ways that you can get the extra $50,000 to fix the house, there are loan programs like the FHA 203(k) - but all of them will require that you have a general contractor oversee the project and that strict timelines are followed. So it isn't the sort of thing that you can go after on your spare time. At least, not on the schedule your parents are using for their home!<br/><br/>Note that you will be paying interest on this money from Day One, so every day that work isn't getting done on the house is a ten spot thrown down the drain.<br/><br/>All the best, Mon, 05 Mar 2012 18:10:00 GMT http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ 2012-03-05T18:10:00Z That's is right: FHA 203K ... http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ <div>That's is right: FHA 203K it's a construction loan and to take your example: if you buy a home for $50,000 and you need to take a loan for $50,000 for construction loan, the bank will send an appraiser out to see what much the home will be worth fixed up. If the home will be worth more than $100,000 fixed up, then you can take a loan for up to 96.5% of the value. The process is a little more complicated then I am explaining. You'll need a licenced contractor to do the job and the construction loan money will be paid after the work is done and inspected by the bank's inspectors. You get 6 months for the work to be done during which you do not pay the mortgage payments, as the payments are taken from the loan you are getting. If construction takes longer than 6 months you'll have to make the payments yourself.</div><div>I've had several clients taking advantage of this loan and they are very happy. Most of my clients have purchased 2-3 flats and after buying and fixing up the property they moved in one units and rented the other. Couple of my clients are actually getting cash flow after renting the units and one is braking even. This is the best way towards financial freedom: have your tenants pay for your mortgage.</div><div>Good luck to you and let me know if you have any further questions.</div> Mon, 05 Mar 2012 00:37:00 GMT http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ 2012-03-05T00:37:00Z To know for sure I would ... http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ To know for sure I would like to suggest you get in touch with a lending specialist. They are the experts in assisting buyers like yourself in purchasing homes, especially those that need work. There's one program I know about that is a 203k Loan. I believe it's an FHA product that allows buyers to fix the homes up. You will get a lot of good anoswers here but get with a lender in your area that knows what it takes to buy and fix up a distressed home. Thanks Fri, 02 Mar 2012 15:07:00 GMT http://www.zillow.com/advice-thread/First-Time-Buyer-wants-a-fixer-upper/433660/ 2012-03-02T15:07:00Z