When a home is "turnkey," it means that it has been completely remodeled and is ready for you to move in without having to do any repairs or updates. The HVAC system and kitchen appliances should all work. The plan is for you to just turn the key and move in. That being said, definitions can change from one listing to the next, so it's a good idea to double-check what's included. Before you start looking for a turnkey home, AmeriSave's prequalification tool can help you figure out how much money you have to spend.

Because the renovation work is already done, turnkey homes usually cost more than similar fixer-uppers. The premium usually falls between 10% and 20%, depending on how good the updates are and how the market is doing in your area. But you don't have to deal with the stress and cost of managing your own renovation, which can easily eat into or wipe out those "savings" from a lower purchase price. You can use AmeriSave's mortgage calculator to compare monthly payments at different price points and see which one fits your budget.

You can buy a turnkey property with an FHA loan as long as the home meets FHA's minimum property standards. For homes built before 1978, those standards include things like safe heating, working plumbing, a sound roof, and no lead paint hazards. Turnkey homes usually pass FHA inspections without any problems because they are already updated. AmeriSave offers FHA loans to buyers who qualify with down payments as low as 3.5%.

Of course. A professional home inspection can find problems that aren't visible during a walk-through, even though a turnkey property should be in great shape. Even homes that have been recently remodeled can have problems like broken wiring behind walls, small cracks in the foundation, or plumbing leaks under the slab. It costs between $300 and $500, and it's worth every penny. AmeriSave's home buying guides have all the information you need to know about the inspection process.

A turnkey investment company buys a property that needs work, fixes it up, finds a tenant, and then sells it to an investor as a whole package. The investor gets an asset that makes money from rent right away and doesn't have to worry about the renovation. A lot of turnkey properties also come with a property management company that takes care of tenants and repairs. AmeriSave can help you get a loan for an investment property and explain the different loan options for buying a rental property.

The words are similar, but not the same. "Move-in ready" usually means that the home is livable without needing major repairs. However, it may have cosmetic problems like old cabinets or worn carpet. "Turnkey" means that the home is in great shape overall and has been recently updated. When you buy a property to rent out, "turnkey" often means that there is already a tenant and management in place. ComeHome by AmeriSave lets you look for homes and compare listings while you decide how ready you are to buy.

The biggest risk is paying too much for a house that looks nice but has problems that aren't obvious. Some sellers fix up the parts of the house that people can see, like the paint, flooring, and fixtures, but they don't fix up important but expensive systems like the roof, HVAC, or plumbing. That's why you have to get a full home inspection. Another risk for investors is that the turnkey company might make the property's rental income potential sound better than it really is. Always check rent estimates against data from the local market. The Resource Center at AmeriSave has tools to help you find these warning signs before they turn into problems.

You can use VA loans to buy turnkey homes as long as you plan to live in the home as your main home. VA loans have some of the best terms available. For example, eligible veterans and active-duty service members don't have to make a down payment or pay for private mortgage insurance. The property must meet VA's Minimum Property Requirements, but most turnkey homes do so without any problems. AmeriSave offers VA loans and can help borrowers who meet certain requirements get these benefits.

To begin, ask for references from people who have bought from them before and read reviews online. A good turnkey company should have a history of finishing projects, be willing to share paperwork about renovations, and have clear prices. Find out how long they've been in business and what kind of guarantee or warranty they give on their work. If a business can't answer these simple questions or tries to rush you into a deal without letting you do your research, walk away. While you look at turnkey companies and properties, AmeriSave's team can help you with the financing.

It can be a great option for first-time home buyers who don't want to deal with the extra work of remodeling their new home right away. With the mortgage, the move, and learning about owning a home for the first time, you already have a lot on your mind. Turnkey removes the need for renovations. The trade-off is a higher price, but many first-time buyers think the peace of mind is worth it. AmeriSave's programs for first-time home buyers can help make turnkey homes easier to get by offering low down payment options.