Armed with a heavy dose of fixer upper shows on TV, homeowners sometimes dream of starting over from scratch on their next home – choosing every detail and doing it themselves. Both the appeal of the decision-making power and the potential cost-savings make this an attractive idea. But is it a good one for you?
Often fixer-uppers will be available for a significant savings over the cost of a finished ready-to-move-in home, but this savings will vary by location. Some areas may even offer a tax abatement which is a credit for homeowners who improve their property’s value. Check with your local guidelines to find out more.
If you haven’t saved up money for all the remodeling work a house like this will require, there are special 203K mortgages for homeowners from the FHA that are specifically for buying and then renovating a property. Limits for these also vary by location, so investigate this option with your mortgage lender to determine if this is an option for your area.