If you are thinking about purchasing a fixer upper -- either to rent out or to flip and sell -- you might be worried about financing. It's true that many lenders prefer to have home inspections done to ensure that a home is in good condition before they will provide a mortgage, which obviously isn't a good thing if you are buying a home that isn't in the best shape. However, there are a few things that you can look for to help you find the right financing for your fixer upper.
Look for a Lender That Specializes in Helping With Fixer Uppers
To find a lender that will help you with financing for the home that you want, you should look for a lending institution that specializes in helping with fixer uppers. Your average mortgage lender probably won't touch a loan for a home that is in poor condition. This is because most banks don't want to loan money when the collateral will be less than desirable.
Luckily, there is one great option that has been helping home buyers like you and that will help you with financing for your fixer upper -- a private money lender, such as Center Street Lending which provides funding in Arizona, California, Colorado, Washington state, Utah, Texas, Florida, North Carolina, Virginia and Georgia. If you live in one of these states, you should contact us so that we can tell you more about our lending options for fixer uppers.
Look for a Lender That Offers Fast Funding
As someone who has been shopping around for fixer uppers, you probably know that if you want to get the best deal, you often have to move fast. Many people who are selling fixer uppers want to get rid of them as quickly as possible, so you have to be ready to move fast. Otherwise, you could lose the deal to another interested buyer.
Finding financing can take time, and you might not have that extra time if you want to jump on a good deal. Luckily, companies like Center Street Lending offer a 24-hour turnaround time, so if you find a good deal today, we can help you purchase the fixer-upper that you're interested in tomorrow. If you live in a state in which we don't offer funding, you will still want to look for a private money lender that will work to get your funds to you quickly. Otherwise, you might lose out to someone who has already found a fast funding option for the property that you are interested in.
Find a Lender That Will Offer Funds for Home Repairs
Making your fixer upper livable is probably going to take a significant amount of money. There's a good chance that you don't have the cash lying around to fix up your home, and getting funding later can be tough. Therefore, you should look for a lender that will give you the funds to purchase the home and fix it up. Then, you'll have the money that you need to get the home looking great.
Look for a Reasonable Interest Rate
Don't let a lender take advantage of your situation. You might be desperate to purchase the fixer upper that you have found, but you should still shop around to ensure that you find a reasonable interest rate. Otherwise, your good deal might end up costing you a lot more than you had intended.
If you are looking for financing for fixer upper homes, make sure that you look for these things. For lending that is sure to be perfect for you and your fixer upper, contact us at Center Street Lending today.
Center Street communications are not intended to provide business, legal, tax, investment or insurance advice. No Center Street communication should be construed as a recommendation for any business or investment strategy by Center Street or any third party. You are solely responsible for determining whether any investment, investment strategy, business strategy or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation.