My wife and I are looking to purchase a new home(our first) and are looking at one that we both like. Great lot, neighborhood, right location etc.
The catch is the house needs work. It's 50 years old, needs floors, kitchen, bath, windows, and definitely some foundation work. I work in residential construction(foundation engineering and code inspections) so between my know how and network I'm not too worried about the work side of things. I just don't know the best way to finance this.
This home is listed at ~$240,000. Comparable houses in the area are $350,000 plus if they are remotely updated(the two nearest this house are $400k and $435k) I'm meeting a realtor and crunching numbers now but assuming the appraisal comes in at $240,000 how would you go about funding an additional $30-40k of improvements on the home? Separate loan all together? Make minimum down payment and use the money we've set aside for repairs/improvements?
If we get this house we'd have room to grow and would plan on living there for the foreseeable future fwiw so I'm not too worried about flipping or needing to make an instant profit off this. Just curious what the lenders or other buyers recommend. TIA
The catch is the house needs work. It's 50 years old, needs floors, kitchen, bath, windows, and definitely some foundation work. I work in residential construction(foundation engineering and code inspections) so between my know how and network I'm not too worried about the work side of things. I just don't know the best way to finance this.
This home is listed at ~$240,000. Comparable houses in the area are $350,000 plus if they are remotely updated(the two nearest this house are $400k and $435k) I'm meeting a realtor and crunching numbers now but assuming the appraisal comes in at $240,000 how would you go about funding an additional $30-40k of improvements on the home? Separate loan all together? Make minimum down payment and use the money we've set aside for repairs/improvements?
If we get this house we'd have room to grow and would plan on living there for the foreseeable future fwiw so I'm not too worried about flipping or needing to make an instant profit off this. Just curious what the lenders or other buyers recommend. TIA