Im' new to buying a house. I don't have a lot of income (I barely make 25K) so I need to keep the payments low. Based on all that, I need to get a place about $55K-$70K and no more.

To get a "nice" place I need to do a fixer. OK, fine. Lots of great ideas here. BUT - How do I get the financing for the fixing? I can get the mortgage to purchase, but not fix it up to move in.

Can't keep doing the rent thing while I'm fixing, so I need to do it fast.

This message has been edited. Last edited by: tn-morgen,

Homeownership is expensive. Not just remodeling, but everyday maintainance. You can get a loan for above the cost of the house if it appraises higher than the listing price, which in todays market is extremely hard to do.

But, say you are able to get a mortgage with enough dough to fix things, are you going to have money 5 years down the line when more expensive things happen, or will you have to finance that also? Just this year alone, I've put in over 10,000 dollars in home maintance. New boiler, hook up to city water, hot water tank, ect. Next year, I have to do the roof at a cost of over five grand.

Alot of people find that they can afford the mortgage, but then things happen, and they are not able to pay for the maintanance of the home. Things get neglected, then when they find they have to sell the house, they lose money because the house is not worth as much as when they buy.

You really need to decide whether or not you can afford the mortgage and maintanance. It's not a good idea to have to rely of financing all maintance costs.

I don't know where you live, and I don't know how skilled you are with the construction stuff - but unless you are really skilled, and can do most tasks yourself - I would wait a bit, save up some money for a big downpayment, and really think about what you want. Where one of my sisters lives, you can get a nice house for about $45-55K (they're small houses - but my sister is older than me - and I'm older than dirt). Her husband does construction and can fix absolutely anything. Since he has that skill - anything she decides to do can be done really inexpensively - but she never plans changes until they have the money to pay for it. If you think you're going to have to get a mortage for about $60K - and you don't already have the money to make the changes you'd need - you're probably getting in over your head. As Renee said - things come up in houses that you don't expect, and if you're already mortgaged to the teeth, you will not be happy, and will have an incredible amount of stress. Please - wait until you feel comfortable that you can either a) get a mortgage and you have the cash to make improvements or b) you can very comfortably get a mortgage for the whole amount. Please be careful!!!!

Well, I'm finding houses for 40K but they need anywhere from 5K-40K of work. It also depends on the area of town. I'm in Knoxville, and there are some areas that are already too expensive, but other areas that are not.

Most the property on the market is the forclosure market stuff - no appliances, probably need either a little or a lot of work. I've found some that need little, but I can only get financed for the selling price.

Mostly looking for creative ways to get that rehab/construction loan money when the house - as is - won't appraise higher.

Call some local lenders. Keep calling. Ask about City and county homebuyer programs. Recently, a school teacher got $40,000 toward her purchase from the city. The money availability comes and goes. There are restrictions...can't sell in five years..etc. You have to take an evening course...in homeownership...for a couple of evenings.

This message has been edited. Last edited by: real estate lady,

You may want to check into HUD's 203(k) program. More information can be found here, at http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

A few words of advise. Prioritize things. Structural issues need to be dealt with first. This includes but not limited to, things like the roof, framing, foundation. Then worry about the mechanics of the house, like the furnace, plumbing and electrical issues. These first few items are usually the most exspensive, in the structural section. Worry about cosmetic stuff last. What I mean about cosmetic, is that you can deal with formica countertops and plain jane cabinetry. On the cosmetic side, you can do a little at a time. A whole kitchen remodel done at one time can cost upwards to 20,000 dollars. But you can do it in small sections at a time.

Thanks! Thats' what I needed.

I'm pretty savvy when it comes to home repairs. I know that if a structural issue is brewing, I'm probably not qualified to deal- asbestos on one little floor can be sealed & left alone.

Electrical & plumbing - well plumbing is a specialty - done several structures with that, electrical & gas lines I leave to the contractors. Roofs - yep - I know what to look for..

I'm looking for a home, not a flip. I need to stop paying rent and start paying a mortgage. It's time to grow up.

Just take it a little at a time. After all, ya got thirty years to do it in!!!