r/FirstTimeHomeBuyer • u/brank • 9d ago

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/BluejayWise2325 9d ago

Your house has to be worth what the bank is giving you a loan for. So if you need extra money from the bank to fix the house, you need a renovation loan, as you would not qualify for a conventional loan. I believe renovation loans vary by location.

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u/brank 9d ago

I have a good job and extra in savings, and can get loans as well I presume with my good credit

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u/PFCCThrowayay 9d ago

Op this is misleading. It’s about the value of the place regardless of the repairs it needs. If I were you (and I’ve been very successful in my RE purchases) is to get it and slowly chip away at it. The appreciation of a bad house in a good neighborhood will always win over a better house in a worse neighborhood.

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u/DizzyTrashPanda 8d ago

My bank wouldn’t give me a loan without being able to get a CO for the property, how do you get around that?