We want to put an offer down for a house that needs alot of cosmetic work. We wanted to know how it works when people need the extra money to fix up the house before being able to live in it. We don't have that much money to put upfront to fix the house and I'm sure other people are in the same situation. Is there a way, when applying for a mortgage, to get extra money, or how does that work?
2007-07-02 03:47:25 · 4 answers · asked by Val 3 in Business & Finance ➔ Renting & Real Estate
Rule number 1.
Dont buy a money pit or fixxer upper unless you can easily afford to pay for the changes. It just wont benefit you. Sure, you may get a loan to help you with it, but odds are the interest rate is going to be much higher then your mortgage rate. You wont nessarily profit from the money you are putting into the house.
If you do decide to buy this house, I would wait a while if possible to start putting money into it. For one you want to see how easily you are going to be able pay the bills every month, and two, if you wait a while you may be able to refinance at a good rate.
2007-07-02 04:57:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Some people try to get a home equity loan as soon as they close, but in today's market that might be tough.
Ideally, you want to have extra money left over from the closing to put into that.
Otherwise you might just have to take another loan.
2007-07-02 10:52:43 · answer #2 · answered by jargent100 5 · 0⤊ 0⤋
I would not recommend buying a definite fixer upper on the get go on buying a house. It has to be livable first and foremost. The first few months of ownership is the most financially stressful.
2007-07-02 11:06:47 · answer #3 · answered by QuiteNewHere 7 · 0⤊ 0⤋
another loan..or ask the folks
2007-07-02 10:53:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋