American Mortgage Resource, Inc.

Providing the Best Financial Resources for Boston and Massachusetts

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Home Loans and Fixer Uppers

There are countless reasons why fixing up old homes has turned into one of the most colossal real estate trends over the past decade. While it seems everyone talks about fixing up an old home one day, not many people are speaking about what it’s like to finance such a project. Fixer upper loans combine the purchase or refinance of a property with the cost of renovating it. This unique mortgage option addresses the challenge buyers often face when figuring out how to finance a fixer upper. Follow along below as we discuss why you should invest in a fixer upper and what loan options may be available to you.

Reasons to Purchase a Fixer Upper

  • You can build the custom home of your dreams
  • You can flip it for a profit
  • It’s typically cheaper than purchasing a newer home
  • There’s less competition when purchasing it
  • You fell in love with the property or neighborhood, but not the home itself

Loan Options

  • FHA 203(k) Loan – This government backed loan will require that you to adhere to FHA guidelines and limitations when completing renovations. In some cases this loan will not allow for much DIY work, as the government will require that licensed contractors complete most major tasks.
  • VA Renovation Loan – Some eligible service members, veterans and qualifying spouses can use this loan to combine a VA purchase loan or VA cash-out refinance with their renovation costs. Other major advantages of this option include not having to pay a down payment or any closing costs on the property at the time of purchase. In some cases the VA accommodates a higher purchase price based on the home’s expected value once renovations are complete
  • HomeStyle Loan – Referred to as a Fannie Mae convention loan, a HomeStyle loan is a fixer upper loan similar to a FHA 203(k) loan, but with increased limits for borrowers. Due to the fact that this is a conventional rehab loan, homebuyers finance their home directly with private banks or mortgage companies that offer this product, and Fannie Mae purchases the loans from lenders.
  • CHOICERenovation loan – Also dubbed the Freddie Mac loan, CHOICERenovation can be used to finance a fixer upper project through traditional means in conjunction with the refinancing of a separate existing property. This option is great for those who plan on purchasing the fixer upper as a second home or as an investment property.

Final Thoughts

Before you commit to spending your free time renovating a fixer upper, make sure you know exactly what to expect throughout the process financially. For free and honest advice from the pros, contact the team at American Mortgage Resource, Inc. in Boston, MA. Visit our website to learn more about the loans we offer or contact our team directly Monday – Saturday at (617) 972-8588.

Loan Application Terms You Should Know

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When you’re starting to apply for home loans, you’ll come across some financial terms during your research. While you might be familiar with a few words and phrases, there could also be a couple of confusing ones too. Loan jargon isn’t a part of everyone’s vocabulary, which is why we have written down terms that might be helpful on your loan application journey!


A quick way for lenders to tell you what kind of loan, if any, you may qualify for. It’s important not to confuse prequalification with preapproval, which is a more formal commitment from a lender and often requires additional documentation.

Net Income

Your take-home pay after taxes and other deductions, such as health insurance. Simply, this is the amount you see on your paycheck. Note: your net income is different from your gross income, which is your wages without any deductions.


A cosigner is someone who signs for your loan with you. If your credit score isn’t high enough, a cosigner, which is essentially someone who is legally obligated to repay your loan if you’re unable to, may be a way to get the money you need.


This stands for annual percentage rate. An APR includes your interest rate, but also wraps in things like one-time charges and annual fees. You can use an online loan calculator to determine how APR can affect your monthly payments.

Debt Consolidation

If a lender mentions debt consolidation, this means a combination of debts into a single loan. Anything from credit cards to house bills is included.


At American Mortgage Resource, Inc., we make the loan application process simple. If you have any questions about our programs or lending options, visit our website for more information. You can also contact our team by calling 617-972-8588. Get approved today!