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How to Buy a Fixer Upper House With No Money 

How to Buy a Fixer Upper House With No Money

Does your dream home require a ton of imagination and a lot of money?

Fixer-uppers are a great way to save on the price of a home, plus they allow you to make the house unique to your taste and style. It’s a great investment but comes with a heavy price tag that many people cannot fully afford.

Need to learn how to buy a fixer-upper house with no money?

Keep reading on various forms of payment options.


If you’re set on buying a fixer-upper but aren’t financially ready to commit to paying for the whole thing yourself, applying for a loan may be just what you need. Loan programs can cover either a percentage or the entire portion of the renovation costs, but you need to read the fine print as each program varies in project coverage and rates.

Here are the two types of lending programs that can get you closer to your dream home.

FHA 203(k)

Offered by the Federal Housing Administration, the FHA 203(k) loans give homebuyers the chance to finance the purchase of a fixer-upper home as well as its renovation costs.

These loans are all about improving the home property and surrounding land, so while you’ll have your choice of a small facelift or starting from the foundation on up, it will not cover amenity projects like pool additions.

It also gives you the option to finance six months of the mortgage if you won’t be staying throughout the renovation, but that means the renovation must be completed with that time frame. Here are other requirements for getting approved:

  • The cost of coverage must be at least $5,000
  • Property value must be within FHA mortgage limits of your area
  • Must have 3.5 percent of the down payment

They may seem strict, but these requirements protect your money while ensuring the banks that you’re able to pay them back promptly.

Bridge Loans

Bridge loans are short-term, flip loans that cater specifically to fixer-uppers. They’re of a higher interest bracket than an FHA-based loan, but they come with fewer requirements.

You can use a bridge loan in two structured ways; before the reno in the form of a loan to cost(LTC) to determine the loan amount, or after repair value (ARV), which is the value specified after the work is complete.

This loan is great if you’re considering single-family and multifamily residences, but keep in mind that you cannot stay on-site during the renovation due to a bridge loan requirement. View here for more information on what it takes to get approved.

Credit Card Finance

If approval doesn’t go your way, you can still renovate your home by paying with a credit card. Credit cards often seem like a scary solution, especially for large purchases, but they can help you manage small-scale projects payments that you can pay off each month.

Some credit cards even offer 0 percent interest for a period of time to assist in paying off your home projects.

Home Equity Line

If you’re already a homeowner and looking to expand your real estate, you have the option to open up equity from your existing home. You’ll receive the money upfront and have equal payments for a period of the loan.

The one thing to note is that this way of payment creates higher interest rates with shorter payment times, so it should be thoroughly researched before committing.

Now You Know How To Buy A Fixer-Upper House With No Money

Learning how to buy a fixer-upper house with no money shouldn’t be overwhelming. Use this information to make an informed decision and start working on the home of your dreams.

For more tips on home buying, check out our Home and Garden tab.

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