Depending on where you’re looking to live, you may end up looking at historic houses. Historic houses have a sense of life to them that newer ones don’t always have, due to the history of the house itself, as well as quirks the house has, such as odd floor plans or old school decorations. But buying a historic game comes with much more than just living in a piece of history. Depending on the location, age and condition it’s in, a lot more might have to go into the home before it’s comfortable to live in. Here are a few things you should know before you buy a historic home.
Old Home, Old Problems
Even if an inspection isn’t required, it’s a good idea to still get one done on your potential home, especially if it’s a historic home. Older houses come with problems that newer houses don’t have to deal with, such as lead paint or asbestos. You don’t want to move into your new historic home just to find out there’s some type of health precaution, so try to find an inspector who has experience with historic homes and their issues.
Financing and Insurance Can Be Hard To Acquire
One common issue that arises when looking at buying a historic home is acquiring financing and insurance. If the home you’re looking at needs extensive repairs, lenders will likely be hesitant. Since traditional loans will likely be hard to get, you might want to look at private loans such as a 203(k) loan. 203(k) loans also go by rehab mortgage insurance and typically go towards the cost of rehabilitation as well as the purchase of the home itself. The same thing can happen when trying to get home insurance as well. Insurance companies will sometimes assume that the replacement costs will be higher for historic homes, but this isn’t always the case.
It Can Get Expensive
Historic homes tend to be pretty well built, which probably explains why they’re still standing after all this time. The problem is that depending on how old it is and the kind of work that has been done to it over the years, it could end up needing a large number of repairs which can add up. If you don’t have a steady income and a solid amount of money put aside, you likely shouldn’t try buying a historic home. You don’t want to be surprised by an urgent repair only to realize you can’t afford it. Depending on where you live though, you may be able to get a tax cut that helps with repair and maintenance of your historic home.
There’s a lot more to think about beyond what I’ve mentioned here when buying a historic home. It’s important to take your time, and do the research to make sure this is an investment you really want to make. If you do, you won’t regret it.