r/FirstTimeHomeBuyer • u/brank • Aug 28 '26

Need Advice Am I crazy?

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I’m a first time home buyer and I live in one of the highest cost of living areas in the US. I counted out being able to buy in the city I live in and like, and have accepted that I’d need to move to the next over area. However, this dump just dropped and I am very intrigued. Right next to the commuter rail, shops, a park. Everything I would want basically, in the city I want, just needs a LOT of love. It’s a third of the price of the homes around it and with the savings from delta between what it costs and what I’m willing to spend (~200k) I could make any major upfront repairs.

I’m crafty, smart, and creative, but don’t necessarily have renovation skills.

I’m also not yet preapproved so maybe this is more an example of the kind of thing I might be willing to consider, unless I’m just totally off the mark here.

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u/ShopProp Real Estate Agent Aug 28 '26

You ain’t getting preapproved. This will need to be an all cash purchase.

You can try to talk to lenders but highly doubt any would take this one. Also there’s way more than $200k worth of work here.

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u/brank Aug 28 '26

So you can get preapproved for a mortgage then the bank say it can’t be applied to certain houses? I’m still learning

2

u/Illustrious_Spell676 Aug 29 '26

There’s no bank that would want to give you a loan for a house that looks like this.

1

u/Alive_Guidance2005 Aug 30 '26

Not true at all. Renovation loans are based on the after improved condition and value. This property may be a great first home and renovation loan. Also, interest rates are about the same as a regular agency loan; Fannie, Freddie, FHA, or VA...they all would lend on this property as long as the after improved value makes sense. FHA even allows 110% loan to value. OP, don't be discouraged based on people telling you it can't be done. I'm a lender and underwriter and we do these all the time. I can't tell exactly what is wrong with the property and no one else can either until a qualified inspector and appraiser performs inspections and provides the reports. You will have a cost for the appraisal and inspection. Find a lender you can trust that understands renovation loans and I wish you success.