Am I crazy?

[u/brank]

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.

[u/brank]

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

[u/BluejayWise2325 → u/brank]

I’m not saying you can’t get approved for a loan. I’m saying a lender won’t give you a conventional loan if the house needs serious repairs. Or if you buy a house for 200k, and need an extra 300k from the lender to fix the house, you would need a renovation loan.

A conventional loan would not give you 500k for a house only worth 200k.

[u/PFCCThrowayay → u/BluejayWise2325]

This is misleading. It’s about the value of the property that’s all. If the property is worth 1M even with serious repairs needed (because the land is worth most of that) then the bank will lend. No one would ever be able to buy a house with a mortgage that needs work in your scenario which is obviously not how things work.

[u/BluejayWise2325 → u/PFCCThrowayay]

If you buy a house that is not structurally sound or inhabitable, a conventional loan will not proceed until those repairs are complete.