What could it cost to buy a fixer-upper home?
As of July 2025, the median price for a single-family fixer-upper home across the nation is $200,000. That is more than 54% lower than the nationwide median home price of $436,250. Of course, this is just the purchase price of the home and does not account for the cost of repairs or the time they may take to upgrade.
If your goal is to sell your property, either eventually or soon, fixer-upper homes can be a great return on investment as renovations and upgrades could increase the home’s value.
Luckily, any borrowers looking to buy and refurbish a fixer-upper have options to fund both under the same loan. To learn what loan options you have when repairing or buying a fixer-upper home, talk to a lender and start an application today!
What is a fixer-upper home?
A fixer-upper home is a house that needs repairs, updates or restoration before it can be considered livable. Fixer-upper homes sometimes need only minor or cosmetic updates, but more often these homes will need significant repairs.
A fixer-upper home has several advantages such as a lower purchase price, the opportunity to customize the property for a new homeowner and a quicker gain in equity after renovations.
How much work is too much for a fixer-upper?
Every fixer-upper home will need a different amount of work. Determining how much work is too much depends on how much money and time you would like to put into the home.
Some cosmetic work on a fixer-upper home can be minor and normally won’t take a lot of time or financing. Minor cosmetic work could be repainting, replacing hardware and cabinets or replacing flooring.
If your fixer-upper home needs structural repairs, you may be looking at a larger costs and more time spent before the home is livable. Repairs also could include fixing cracks in the foundation, replacing pipes and electrical wiring, or roof repair. Before making any structural repairs, make sure you check local regulations to see if you will need any permits.
How much should I invest in renovations?
Similar to how much work you should invest, the amount of money you should put into renovations is determined by your needs and the state of the property.
If your goal is to save as much money as possible, you probably want to avoid any homes that have structural damage, need permits to fix or require you to hire a specialized professional. All of these could significantly add to the money you will need to put into your home before it is livable.
The average total cost of structural, cosmetic and mechanical repair on a fixer-upper typically ranges from $100,000 to $300,000. The exact cost of your renovations can vary based on the location, as repairs in higher-end areas or larger upgrades could reach up to $500,000.
Do homes that require work qualify for renovation loans?
Yes, homes that require work could qualify for renovation loans.
There are several loans option available for financing any planned renovations. These loans can even be applied for as you are buying your home. You can also look at getting a home loan that includes the cost of any planned renovations. For this option, your total loan amount will include the cost of the purchase and any renovations you plan to make.
Home renovation loans allow the borrower to use the contractor of their choosing or to make the renovations themselves. If a borrower chooses to save money and renovate their home themselves, they will need to prove to their lender that they have the ability, time and assets to complete their desired project.
How can I start the renovation loan process?
Applying for a home renovation loan is as easy as reviewing finances, collecting documents and connecting with a lender to fill out an application.
Before you begin the loan process, checking your credit score, debt-to-income (DTI) ratio and the amount you have for a down payment can help give you an idea of what loan options you may qualify for. Collecting any employment verification, pay stubs, tax returns, asset statements and personal identification could save you time when filling out the application. Once your loan application is finished, a Loan Officer will reach out to help you from that point on.
Start your application online to see the kind of renovation or fixer-upper loan you could qualify for.
Information provided is for educational purposes only. It should not be construed as financial or legal advice or instruction. Rate does not guarantee or assume liability for the accuracy, completeness or timelines of the information. You should conduct additional research before making any mortgage related decisions.
