BUY A FIXER-UPPER AND ROLL REPAIRS INTO ONE MORTGAGE
HOW TO BUY A FIXER-UPPER AND ROLL REPAIRS INTO ONE KALAMAZOO MORTGAGE
Are you hunting for a house in Kalamazoo, Portage, or Texas Township, but every home in your price range needs a complete kitchen or bathroom overhaul?
Yesterday, a buyer called my office after touring a mid-century home near Milwood. The lot looked great, the neighborhood felt perfect, and the price sat $40,000 below market value. But the outdated kitchen, worn floors, and aging roof scared them away.
They asked me, “Jeremy, if we buy this fixer-upper, do we need to drain all our savings in cash just to remodel the kitchen after closing?”
I told them straight up: “ABSOLUTELY NOT! You do not need piles of cash in your checking account to remodel a house! You can roll your purchase price AND your renovation budget into ONE SINGLE MORTGAGE!”
That secret weapon is a HOME RENOVATION LOAN.
Instead of lending based on the ugly “as-is” condition of the property, renovation loans lend based on the FUTURE APPRAISED VALUE after all the contractor repairs finish!
Think of a renovation loan like building a custom kit airplane. You do not wait until the entire plane sits fully assembled in your hangar to secure your flight tools. You plan the complete build upfront, fund the parts as work progresses, and roll out a finished high-performance machine ready to fly!
Here is how the two primary renovation loan programs compare for buyers in Kalamazoo County:
| Renovation Loan Type | FHA 203(k) Loan | Fannie Mae HomeStyle |
| Minimum Down Payment | 3.5% down (Based on total project cost) | 5% down (3% for first-time buyers) |
| Credit Score Rule | 600+ credit score (More flexible) | 620+ credit score |
| Eligible Repairs | Roofs, HVAC, kitchens, plumbing, siding | Kitchens, additions, luxury items, ADUs |
| Mortgage Insurance | Standard FHA mortgage insurance | Drops off automatically at 20% equity |
Example:
Yesterday, we helped that Milwood buyer structure an FHA 203(k) loan.
The home cost $200,000, and their licensed contractor submitted a $45,000 bid for a brand-new kitchen, updated electrical panel, and fresh hardwood flooring.
Instead of putting down $45,000 in out-of-pocket renovation cash, we wrapped the entire $245,000 project into a single 30-year mortgage!
Their 3.5% down payment was just $8,575. They keep their cash cushion intact, let their contractor handle the heavy lifting, and walk into instant home equity on move-in day!
Stop skipping over great neighborhoods just because a house needs a little love. Pick the home in the perfect location, customize it to your exact taste, and let your mortgage cover the renovation tab!
Ready to turn a West Michigan fixer-upper into your dream home? Reach out today, call our team at (269) 360-7109, and let us build your custom mortgage flight plan!
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BUY A FIXER-UPPER AND ROLL REPAIRS INTO ONE MORTGAGE
HOW TO BUY A FIXER-UPPER AND ROLL REPAIRS INTO ONE KALAMAZOO MORTGAGE
Are you hunting for a house in Kalamazoo, Portage, or Texas Township, but every home in your price range needs a complete kitchen or bathroom overhaul?
Yesterday, a buyer called my office after touring a mid-century home near Milwood. The lot looked great, the neighborhood felt perfect, and the price sat $40,000 below market value. But the outdated kitchen, worn floors, and aging roof scared them away.
They asked me, “Jeremy, if we buy this fixer-upper, do we need to drain all our savings in cash just to remodel the kitchen after closing?”