Could you do a Munster Mansion make-over? Are you sure?

Ooh my gawd!!! It's perfect! Uh, perfectly...awful. I have yet to figure out the intense longing and attraction some buyers have for what I fondly refer to as a "Munster Mansion".

How and Why? You're sure? 

As my clients and I, venture out on our pleasant little tour, in an effort to locate that darling little home, on that happy little street; something goes wrong. Terribly wrong. One wrong turn, one wrong light, one wrong address; and, there it is...watching, waiting, ah heck, beckoning. The spook house.

I am not literally suggesting the house is haunted; but, I am saying, it looks that way for sure! Yet, beyond any comprehension I can muster (um, I mean Munster) up...my client falls in perplexing love.

Moving forward, every visit to the property feels like I should be decked out in Van Helsing garb; as we drudge through the "how many millions might this cost to repair" inspections. And, still...they yearn; and ultimately they win...the zany house of their dreams. But, at what cost? Grandpa may need to come up with some mystic concoction down in his lab, in order to make any respectable loan happen.

Where's the cash stashed?

So, could you do a Munster Mansion make-over? Are you sure? Do you know what it takes?

Have you tumbled deeply into the vortex of passion for this fixer-upper; and, feel confident you can do it because you watch HGTV? Only, because I am ridiculously infatuated with Tim Burton; my heart "hears" your heart for this new home...and, with great bewilderment I want to help you.

To start...well, where do you start?!!!

FHA and VA loans

If you have a VA or FHA approval, we can now stop. Withdraw your offer, if one exists. Or, I plead of you, don't fall in love with this kind of home; it will only end in heartbreak. Why, you ask? Because, these two loan programs won't touch this creepy abode with a 10 foot pole. They are not in the habit of loaning on "high risk" homes. It's the government, what can I say.

Conventional loans

Personally, I lean more toward a liberal side in most everything; but, conventional loans are one thing I can get my Adam's Groove on to! Conventional loans have far less restrictions (doesn't this seem like an oxymoron; conventional = less restrictions) compared to FHA and VA loans. Basically, if you want to buy a decrepit real estate project, the banks are cool with it; but the down payment assistance option, associated with FHA and VA are null. Most conventional loans require a minimum of 5% down (but, hey if you are buying a fixer upper to begin with; you must have some money buried in a revolving library door, somewhere).

Rehab loans:

Here is where the marriage of FHA and conventional meet! You do have a couple options with these loan programs.

203k Original - Full and Streamline loans. These loans allow you to buy your favorite money pit property, and with the help of a HUD inspector, certification and a little elbow grease; you could have your dream home. In essence, these programs wrap the repair costs and the purchase price together. I believe they have recently opened up this type of funding for investors and 2nd homes, as well. It's a beautiful union.

In my opinion, one of the best websites on the web for this information is http://203k.tv/. The details of these loans are outstanding (and, they have a really awesome website, too)!

401K loans:

I don't profess to know very much at all about these accounts; but, I do know that you can request a withdraw for home purchases and/or remodels. Best to check with your HR department on this one (What? I can't know everything; real estate is MY thing).

Bring on the ghouls and tools

Still think you can take on a spooky and kooky crib? Yeah, me too. First-time buyer or experienced property professional; just knowing there are lending programs out there for you. My motto in real estate has always been...if it speaks to you, it's meant for you. However, in this case if it "speaks" to you...time to look for a new place to call home!