How to Finance a Fixer-Upper

Fixer-uppers can be a golden opportunity, especially in competitive housing markets. They often sell for less, give you the freedom to customize, and can build equity quickly. But financing one can be more complex than buying a move-in-ready home.

Here’s how to navigate your possible options.

1. Conventional Loan

If the home is livable and meets lender requirements, you might qualify for a traditional mortgage and finance renovations separately.

2. FHA 203(k) Loan

This government-backed loan rolls the purchase price and repair costs into one mortgage. It’s ideal for primary residences needing significant upgrades.

3. VA Renovation Loan

If you’re a veteran, the VA offers renovation financing that may cover both purchase and repairs.

4. Home Equity or Personal Loan

If you already own a property, tapping into your home equity through a personal loan could be an option.

Tips for Success:

Get a realistic contractor estimate before making an offer.

Work with a lender familiar with renovation loans.

Have a contingency fund, repairs often cost more than planned.

With the right strategy, a fixer-upper can be a smart path to homeownership or investment growth.

If you’d like help finding and financing the right fixer-upper in Anchorage, call Vanna Siackhasone at 907-720-4663 or visit www.vannaandco.com