Where to get financing for 1st home/fixer-upper?

[Amelia Goodyear]

I am just starting out and trying to navigate the first steps I need to take. My goal is to find a duplex that needs a bit of work, since my partner is able to do repairs and has connections that can help us. My understanding is that I need to have approval for a loan, so I was considering going to my bank (Navy Federal) to find out what they can offer. Is this a good route? Should I approach multiple banks? I don't want to get bogged down with this first step... Thank you for any support or advice.

[Robert Lorenz]

If you're buying a home to live in, you can look into renovation financing such as FHA 203k or Fannie Mae HomeStyle, though unless your friend is licensed as a general contractor he won't be able to any major repair work. Navy Federal should be able to help with a loan like this, though you're always betting on the safe side when you shop around for the best terms. VA loans and standard FHA loans have strict guidelines for the condition of the property, so if you're buying a fixer-upper with one of these it needs to be very light rehab work (basic cosmetics, cleanup, etc).

IMO, yes you should approach multiple lenders (at least 3) and at least have the conversation about rates and terms. Getting your credit in order is also a great idea, if it isn't already >700 (for best rates/terms, 720+). You definately want to be pre-approved before talking with an agent or offering on properties (unless you're wholesaling/assigning)