Fixer-Upper Houses: What Home Shoppers Should Know

Fixer-upper homes offer a more affordable option in a tight housing market but require repairs or renovations. Renovation loans, such as FHA 203(k), HomeStyle, CHOICERenovation, and VA loans, allow buyers to finance purchase and improvements together, often with lower interest rates. Before buying, get a professional home inspection and contractor estimate. Expect delays, extra inspections, and surprise costs; adding a 10-20% contingency is advised.