With prices rising beyond the grasp of many buyers in SoCal, many are left with the following choices:
- Stay put in a rental, and continue paying off someone else’s investment.
- Moving into a smaller than tolerable home for a few years.
- Buying a correctly sized home that is in tough shape.
Here’s a quick roadmap to help you with the answer to that question: should you buy a fixer in Santa Clarita or a fixer in L.A. County?
You can thank (or blame) it on Chip and Joanna, Jonathan and Drew, or any other HGTV dream team — fixer-uppers are getting their fair share of love on the market. According to a survey from Coldwell Banker, 70% Americans want to buy a move-in ready home — leaving about a third of buyers looking to rehab their perfect dream home.
A lot of people buy fixer-uppers with a 203K loan, a mortgage insured by the Federal Housing Administration to help buyers who don’t have a lot of cash to purchase a property in need of repairs. A couple caveats: There are limits to how much you can borrow (they vary by location). And, even within those limits, you can only borrow enough to finance either up to 110% of the home’s projected value after rehabilitation, or the value of the property before rehabilitation plus the cost of rehabilitation. The maximum loan amount is the lesser of these two options.
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The Condo Report: Spring 2018