Can I buy a fixer-upper with a conventional loan?
Sometimes. Standard conventional accepts properties in 'as-is' livable condition. Major repair needs (roof, foundation, systems) may need to be cured before closing, similar to FHA. For larger renovation projects, Fannie's HomeStyle Renovation loan or Freddie's CHOICERenovation wraps purchase + renovation into one loan.
What this actually means.
Cosmetic fixer-uppers (paint, kitchen update, flooring) typically pass standard conventional appraisals. Properties needing major work (new roof, electrical, plumbing) get harder — appraisers and lenders may require pre-closing repairs. Renovation loan products (HomeStyle, CHOICERenovation) finance the as-completed value, allowing the buyer to roll renovation costs into the loan. Renovation loan availability is limited compared to standard conventional. Subject to Fannie/Freddie program rules.
Where this can move.
Property condition, comparable sales availability, appraisal waiver eligibility, and Reconsideration of Value can change the appraised value.
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More conventional questions on Appraisal.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.