You might not think it. But, plenty of new homebuyers enjoy the challenge of getting a “fixer-upper“! Yes, that means you make a lot of work for yourself getting such a property. The upside is that, once all the work gets completed, you end up with the home of your dreams.
I know that some people would rather buy a ready-to-move-in house, and that’s OK. Of course, if you’re something that wants to make their home unique, buying such a house is a brilliant idea!
The only trouble is; where will you get the money to pay for your renovation work? If you’re the recipient of a large inheritance, this blog post isn’t for you. But, if you need to borrow the money from somewhere, keep reading! Today’s handy guide will show you some useful funding sources for your new home project!
The first option that springs to mind is an FHA loan. If you’ve never heard of it before, let me explain. Usually, you would borrow the money to buy your house from a mortgage provider.
An FHA loan is like a standard mortgage but with one significant difference. The government acts as your guarantor! That means lenders won’t see you as much of a risk because they won’t lose any money.
It’s worth checking the FHA eligibility requirements to see if you can get such a home loan. By the way, I’m mentioning this type of home loan for one good reason. Some mortgage lenders won’t loan out money for fixer-uppers!
If it’s not likely you will get a conventional loan from the bank, you could try a peer-to-peer lender. Instead of one entity lending you the money, you get it lent from hundreds of people pledging small sums!
Loan applications from such organisations get approved on their merits. That means you don’t have to worry about an automated process making the decision for you.
Take a look at websites like Zopa and The Lending Club for more information on how they work.
Getting money the hard way
Let’s say that you don’t want to borrow the cash for personal or religious reasons. How else can you get the money you need for your home improvement projects? The answer is simple: work for it!
Doing overtime at work is one possibility. But, if none is available, don’t despair! There are plenty of ways to earn some extra cash by working for it. For example, you could:
- List and sell your unwanted valuables on sites like eBay;
- Do some PC-based work over the Internet, such as copywriting;
- Offer tuition services via a video call to your pupils; and
- Become a micro-entrepreneur.
Those are just a few of many thousands of ways you can do some moonlighting next to your day job. Yes, it means that you’ll have little spare time to yourself. But, the reward is a financial one – and you won’t have to do this forever!
I hope you have enjoyed reading today’s guide!