There’s no denying that fixer upper properties are very popular in this day and age thanks in large part to the wide variety of television shows like Fixer Upper but, the big question is can you get financing for a fixer-upper property?
It Depends On If the Property is Habitable
The answer to if you can get financing for a fixer-upper property is it depends.
You may be able to get financing for a property if the property is deemed to be habitable. A habitable property is any home that you will be able to move into and start living in it after you purchase it.
A property that’s not habitable may not qualify for financing especially if it doesn’t have a kitchen, has holes in the ceiling, or other major problems that make it not habitable.
How to Get Financing If a Property Is Not Habitable
Let’s say that you’ve fallen in love with a Fixer-Upper Property that’s found to be not habitable, how do you get financing in this situation? The answer is you may be able to still get financing for a fixer-upper property, if it’s not habitable, with a hard money loan.
This type of loan is asset based and means that it must be secured by real property. We recommend that every buyer uses sound financial judgement before choosing a hard money loan because, interest rates may be higher, and you may have a shorter term for repayment than you would with conventional mortgage loans.
Let Us Be Your Fixer-Upper Resource
At Fred Sed Realty Group we have a list of fixer-upper properties across Southern California and also hard money lenders that we personally work with so if you’ve been thinking about buying a fixer-upper property, and will need a hard money lender for financing, let us be your resource for fixer-upper homes.
Contact Fred Sed Realty Group today by calling us at (800) 921-9231 or connect with us online to learn more.