Buying a fixer-upper property can be very challenging because standard mortgage programs do not enable you to get a loan based on the after renovation value of a property.
This limits what size mortgage you can qualify for which in turn may restrict the amount of money you can put into renovating the property. If you cannot arrange a mortgage for a fixer-upper through a traditional lender you may be able to get a mortgage through a hard money lender, also known as a private lender.
Borrowers can use a short-term hard money loan, such as a bridge loan, to finance the purchase and renovation of a property and then refinance the hard money loan with a traditional mortgage with a lower interest rate, after the property is remodeled.
