How much is the renovation financing for a shell these days is a big question on people's minds. Another issue is the financing for renovations loans to folks that are qualified. We have been hearing a lot about banks not giving out loans for total gut renovations if the developer does not have the assets to buy a shell for cash since the $400k-600K renovation cost will basically double any mortgage set up for a home. The best bets for starter buyers seem to be brownstones that are in a "habitable" state with bathroom and kitchen working and the ceiling, floors and walls intact. Peeling paint, missing chunks of plaster and surface cracks running throughout the walls are okay, just as long as things are in working order. Banks are more willing to finance this type of renovation loan for a first-time brownstone buyer who needs a mortgage since it will be less costly. So unless you can buy the a total shell for such a low price that would equal to a total cash purchase, do not depend on the banks to give out loans to renovate a complete gut renovation. The above photo is that of the shell on Malcolm X/Lenox Avenue's landmarked block in Mount Morris Park.
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