If you have ever been or are currently house hunting you will probably have come across a fix upper on the list of properties you consider viewing.
Real estate brokers have nicer names for them handyman specials, home in need of TLC but whatever you call them, such properties all have one thing in common. The price is low, but in order for it to be livable the house is going to need quite a bit of remodeling and repair work done on it.
Fixer uppers can be a great way to get more property than you could ever afford if the property was in pristine condition, as long as you are willing to undertake the work that is needed and can obtain the financing to pay for it all.
Obtaining that financing from a traditional bank can be tough. In the USA, however, the Department of Housing and Urban Development (H.U.D.) can help. They offer a program called the 203(k) program that provides credit worthy homebuyers with the access to funds to buy and renovate a fixer upper home.
One of the biggest keys to successfully obtaining such a loan though is getting an accurate estimate of the needed repairs and renovations to submit to the 203k lender who is considering your application. It is up to the applicant to obtain such an estimate.
Home buyers also need to know that if the loan is approved and they buy the property the repair work has to be completed within a specified amount of time. For these reasons and more it is essential that you find a general contractor to work with who is fair, reliable and has a reputation for getting the job done on time.
Take the time to do your homework on the contractors you are considering working with and make it clear to them from the beginning the time constraints you (and they) will be under.