Buyers looking at buying a fixer upper in Bakersfield CA will want to read this article for helpful tips on the buying process and financing options. One great thing about fixer uppers for sale in Bakersfield is that there is often plenty to choose from. Bakersfield offers many many fixer upper properties for sale and buyers looking to put in a little elbow grease will likely reap some great rewards.
If you’re considering buying a fixer upper in Bakersfield CA then just like any home purchase you’ll want to do due your due diligence before closing on the home. This means doing your traditional inspections like a home inspection and pest inspection just to name a few. It’s often a good idea also during your home inspection period to have a contractor evaluate the home so they can advise you what the costs will be to bring it to your “repaired” condition. Many fixer upper homes in Bakersfield are priced for quick sale to begin with but without having the right information on what your remodel costs will be you might pay to much for the home despite the deal you think you’re getting.
One important factor about buying a fixer upper in Bakersfield CA is how you’re going to pay for it. Believe it or not there are programs available for buyers to purchase fixer upper properties other than just paying cash. Programs such as an FHA 203k, HomePath Mortgage, HomeStyle Mortgage and Private Money financing are all ways to purchase homes that need a little TLC if you dont have the cash to purchase the home out right.
With an FHA 203K renovation loan, buyers get one loan that not only pays for the home but also for renovations and/or repairs, which can be major or minor. Some terms associated with an FHA 203k are as follows;
• 3.5% down payment based on as-improved value. Seller contributions can be up to 6%.
• $5,000 minimum repair up to a maximum of $35,000.
• Available for owner-occupied, primary residence only. Standard FHA guidelines apply.
• Repairs can include kitchen/bath remodel, new plumbing, appliances, flooring and much more.
The HomePath Mortgage helps borrowers buy and renovate an eligible, 1-4 unit, Fannie Mae owned home with one loan and a single closing. Terms associated with this type of loan are as follows;
• Low down payment.
• Light renovation costs up to $35,000.
• Available for primary residences, second home and investment properties.
• Appraisal required to establish the as-completed value.
• 15 and 30-year mortgages.
• Down payment can be funded as a gift.
One program people might not be aware of is a HomeStyle Mortgage. This is another loan option provided by Fannie Mae and buyers can use this program to purchase and refinance single-family homes, PUDs, 2-4 unit dwellings and condos. This program allows you to finance the cost of improvements into the loan, up to 50% of the as-completed home value. Some terms are as follows;
• All renovation work must be completed by a licensed contractor.
• Available for primary residences, second home and investment properties.
• Renovation must be completed within 12 months of loan closing.
• Minimum 5% down payment from borrower’s own funds.
• Minimum 700 credit score.
Last but not least is Private Money financing also known as hard money. Many investors use this type of financing because there are no restrictions on how many loans you can have and the borrowing criteria is mostly property value based. Here are some terms associated with this type of financing;
• Minimum of 35% down payment on appraised value.
• No restrictions on how many loans a borrower can have.
• Approval is based primarily on property value and borrowers down payment.
• Can be used on any type of property, i.e. investment, owner occupied, commercial, etc.
Looking to purchase a fixer upper in Bakersfield CA? Take a look at these properties for sale!
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