Tips for Securing a Mortgage Loan for a Fixer-Upper

Perhaps you enjoy watching shows about people buying aesthetically unappealing houses and turning them into stunners. Maybe you are handy and like to fix things that are broken. You may even be a skilled tradesman in plumbing, HVAC or electrical work. When buying a fixer-upper and working with the best loan officer in Las Vegas, keep these tips in mind.

Get the Proper Inspections

While inspections may be voluntary for traditional mortgages, they are often required for the specialty loans needed for a fixer-upper property. You may need to have a variety of inspections. The Department of Housing and Urban Development (HUD) may send an inspector. City code enforcement may send an inspector. You may also need pest, roof, electrical and structural inspections.

Determine Which Repairs Need to Be Made

In order to get a mortgage on a fixer-upper, you will need to have a plan of action on which repairs to make. In some cases, lenders or local governments will require you to have contracts in place for certain types of repairs. For example, if the property has hazardous materials onsite or the utilities have been disabled or damaged, you will need to have a course of action for correcting those safety and health issues.

Look at the Mortgage Loan Options

There are several different backers of loans for fixer-upper houses. You could look into loans backed by Fannie Mae HomeStyle. This is a program that allows you to roll the renovation and mortgage costs into one package. It features a single close, and you do not have to open a separate line of credit. A 203(k) loan may be another option. FHA loans may also be available for your property purchase and renovation expenses.