If you’re having trouble finding and buying your move-in ready dream home, you’re not alone. Today RealtyTrac released its aging homes report, showing that more than 70% of U.S. homes were built before 1990. To make matters worse, institutional investors are snatching up the newest homes, seeking to avoid the costly rehab that many older homes require.
But home buyers are not out of luck:
You can still create your dream home by buying and fixing up an older home with the help of a government-backed 203(k) loan, which lets you borrow up to 110% of the post-upgrade value. Older homes have less institutional investor competition (see the chart below) and the average price of a home built before 1990 is $23,000 lower.