What's a Renovation Home Loan?

Thinking of buying a home that needs some work and turning it into the home you’ve always wanted after some much-needed repairs or remodeling? That’s a smart idea!

If you’re one of those homebuyers who can spot a residential diamond in the rough and envision everything that home could become, you may be surprised at the financial advantages of buying a home with a renovation home loan. This type of home loan enables you to roll the cost of repairs and/or upgrades into your mortgage for one loan and one monthly payment.

Here are some of the benefits of buying a home with a renovation home loan:

• You may get a bargain by paying less than market price
• Bargain prices can get you into a more expensive area than you could otherwise purchase
• You may be able to buy a larger home than you imagined
• Improvements you make can increase the fair market value of your home
• The renovated property will be done just the way you want it, reflecting your tastes and serving your needs

With a renovation home loan, you finance the home purchase price plus the cost of repairs and/or updates. You can also refinance your existing mortgage plus the cost of repairs. With both of these options, you only have one application, one approval process, one loan closing and one mortgage payment.

A renovation home loan enables you to make repairs and/or improvements right after closing, and the renovation costs are spread throughout the mortgage term. This type of financing is usually a better option than financing repairs and updates with a personal loan or credit card, which could feature higher interest rates.

Want to start looking for that "fixer" home? Contact me via phone, email or my website to get started!