Buying a fixer-upper in Michigan can save money up front, and renovation loans such as FHA 203(k) or conventional renovation loans let you finance repairs into the mortgage.
Renovation loan basics
Renovation loans combine the purchase price and repair costs into one mortgage. They require contractor bids and a scope of work, and funds are released as work is completed. Ask a lender which programs fit your project.
Inspect before you commit
Hire a thorough inspector and consider specialists for foundation, roof, or sewer line concerns. Older Downriver homes may have outdated wiring, plumbing, or drainage that affect your budget.
Build a cushion
Budget 10 to 20 percent above contractor quotes for surprises. Verify contractor licenses and insurance, and get multiple bids so you understand the true cost before you close.
Frequently Asked Questions
What is an FHA 203(k) loan?
A government-backed loan that finances both purchase and rehab costs in one mortgage.
Can I live in the home during renovation?
Sometimes, depending on the scope and loan program.
Do I need permits?
Most structural, electrical, and plumbing work requires permits in Michigan municipalities.
Talk to The Saward Team
The Saward Team helps buyers and sellers across Downriver Michigan with local pricing, honest advice, and a clear plan. Call or text 734-322-3302, see what your home is worth, browse our buyer services or seller services, or read more answers on our FAQ page. This article is general information, not legal, tax, or financial advice; consult a licensed professional about your situation.