Can you buy a fixer upper using a conventional loan product?

4 Replies

@Ifeanyichukwu Anizoba you can as long as it appraises for the loan amount you are looking for. If you are trying to roll the rehab costs into the loan, you may want to look into an FHA 203k which will let you roll the purchase price and rehab into the loan. Will you be using cash for the rehab or would you want to roll it into the loan?

Depends on how much work the house needs. If its uninhabitable, FHA and conventional aren't going to cut it. If it needs minor repairs you may be able to get away with it.

There are 4 main types of rehab mortgage loan options;

  1. FHA 203k
  2. Fannie Mae Homestyle
  3. Freddie Mac ChoiceRenovation
  4. VA Renovation Loan

The FHA 203k is by definition, an FHA loan.

Homestyle and ChoiceRenovation are both conventional rehab loan options that almost mirror the process of the FHA 203k.

The VA Renovation Loan is only for vets, but has been suspended since March 2020 because VA will not allow their appraisers to go inside the property for rehab loans.

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