 TITLE: Do I Need Good Credit to Buy a Fixer Upper? CONTENT: Mortgage Loan Options for a Fixer Upper\n---------------------------------------\nBuying a fixer upper creates special financing challenges. A conventional mortgage is often not the ideal choice. If your fixer upper doesn't have working utilities or is otherwise uninhabitable, for example, a regular bank or finance company may balk at extending a loan. Also, conventional mortgages don't typically include an allowance for significant repairs. If you want a conventional loan, you'll usually need to find other sources of funds for repairs, such as using some of the cash you'd planned for your down payment; using interim acquisition and improvement financing; or finding separate financing, such as personal loans, to cover renovations.\nAlternatively, there are mortgage programs designed specifically for fixer-upper properties. These are generally backed by the government and offered through private lenders such as banks and credit unions. With a renovation loan, you can add a repair budget to your purchase price and finance the entire project with a single loan. The lending process can be a bit more complex, requiring pre- and post-renovation appraisals, contractor estimates, multiple inspections and special escrow accounts for renovation funds. But the benefits are clear: You'll have the funding you need to complete repairs and upgrades—and may have built-in reserves for unexpected expenses. You also may be able to fold in the cost of renting a place to live during renovations into the loan and may even get help qualifying for a loan with less-than-perfect credit.\nHere are four renovation loan programs to consider: END