Real EstateBuying A Fixer Upper In Charleston SC? Start With The Right Financing

By Rebecca Halpin, Guest Contributor 

Shiplap, french doors, open floor plan, “oh my! ” We have all been there on Saturday morning, curled up on the couch watching HGTV’s “Fixer Upper, ” “Property Brothers, ” “Flip this House, ” “Flip or Flop ” … or any of the other popular home renovation shows thinking, “I wish I can afford to renovate a home that fits my family’s needs. ” The truth is, you can! It’s a little known secret that a well executed renovation can indeed be the most affordable way to buy a home and gain immediate equity.

How do people afford the purchase of a fixer upper in Charleston SC without the additional cash to pay for the renovation? A 203(k) loan (a specialized loan available through the Federal Housing Administration (FHA) toward construction or renovation) is what a majority of people are using. This type of loan will allow you to buy a home that is in need of work AND give you the money to renovate it, all while putting a minimum of 3.5% down. This loan program is designed to help with community and neighborhood revitalization, as well as to expand home ownership opportunities.

So, let’s say you qualify for a $200,000 loan. The next step is to find homes that need the most work in some of the best neighborhoods – and let’s say we find THE home for $150,000. We will then determine the renovations needed to make this home habitable, and present a detailed list of those fixes to your lender. With the 203(k) FHA loan they will lend you the money to do the renovations.  These renovation mortgages, technically referred to as either the FHA 203(k) or FNMA HomeStyle loans, bundle together the cost of a home’s purchase with extra funds allocated for home improvements. With the simple requirements of a 640 FICO score, and that the home must be “owner occupied ” after renovations, you will be on your way to owning your own “Fixer Upper ” in Charleston SC.

What to do next? Start by reaching out to the team at LS Renovations to make your renovations count. We are there from start to finish and you can be as little or as much hands on as you desire. Before you know it the once “ugly duckling” on the street will be the envy of all your neighbors. That once $150,000 investment may have increased to now have an appraised value of $215,000 – and that scenario is indeed what is the true “star power ” of buying a fixer upper!

Note: We work together seamlessly with our LS Renovations team on devising a timeline for renovations to achieve exactly what you are looking for in your next home. We can help come up with the design options to suit your needs and then our renovation team, under the leadership of Kris Miller and Stu Fitzgerald, will make that “HGTV dream ” a reality.