You need options. And when you’re looking for a home, especially in today’s market with low inventory, a renovation loan might be the best option for you. So, let’s talk about how you can take advantage of a renovation loan to create your dream home.
You’ve probably already heard the terms FHA and Conventional because those are the most popular mortgage loan options out there. But you may not know that a renovation loan is simply a modification of one of those two loans. There’s really not much your loan officer has to do differently in the approval process for a renovation loan.
And when you’re out there looking for homes, especially in today’s market, if you go ahead and get approved for a renovation loan just in case you need it, you’ll be able to look at homes through two different lenses:
If you find a turnkey home that’s amazing and perfect and doesn’t need anything done to it – great! You’ve already been approved for an FHA or Conventional loan, so you’re good to go.
But if you find a home that’s in the right neighborhood but maybe the kitchen is dated or there’s been maintenance that hasn’t been kept up with – great again! You’ve already been approved for a renovation loan and can finance the cost of those repairs, updates, or upgrades right into your mortgage and not have to think about how to get your hands on the funds to make those changes.
Now, let’s talk about the three situations where a reno loan comes to the rescue.
1. OVERCOMING YOUR OWN OBJECTIONS: “This house is perfect… except…” Just knowing that a reno loan is an option really helps buyers keep an open mind when they see a one-car garage when there’s clearly space for a two-car, or when they just can’t find that dream kitchen in any house. A reno loan gives you the ability to make those changes.
2. BAD HOME INSPECTION: The home inspection shows that the house has some major repairs that need to be taken care of – maybe it needs a new septic system or you’re on well water and it needs a new pump. That would scare a lot of people away. But NOT YOU! Because you know that you have the option to roll the cost of those repairs right into your mortgage payment.
3. LOW INVENTORY: And finally, as we’ve been seeing in our current housing market, there’s a serious lack of inventory right now. So, you’ll want to keep the big picture in mind and get creative. Is this house in the right neighborhood, near family, friends, work, school, etc, but the house is… meh? It’s fine because you have options! Remember, you can change the house, but you can’t change the location. That’s where renovation loans come in.
So, if you’ve been frustrated looking at a million houses only to come up short because none of them meet the criteria on your list of must-haves, again, you have options. Give us a call. Homespire Loan Officers are always here to walk you through different loan scenarios to help you find the perfect option for you.
Learn more about Homespire Renovation Loans by visiting https://www.homespiremortgage.com/renovation-loans/.