Buy It, Then Make It Your Own: Homestyle Renovation Mortgage
Posted: June 06, 2018 by Bailey Gordon
You know we like to keep customers and clients up to date on Real Estate options that we think can help them, but did you know there's a Mortgage option available that may help you do moderate home improvements and roll the costs right into your loan?
Let's say you're house hunting and you come across a home that you love, but it needs a little work... we've all been there.
The HomeStyle Renovation Mortgage may be the perfect way for you to purchase the home and also borrow the the necessary funds for the renovations, all in a single close-loan that is based on the "as-completed" value of the home rather than the present value!
Most mortgage loans require a property to be in sound condition with no structural defects or required repairs, but not this isn't just any loan! ...it's made for homes needing anything from appliances, to major repairs and even new additions!
Here's how this mortgage benefits the Buyer:
It's a cost effective way to renovate or make improvements to the home
Single-Mortgage means lower closing costs and typically a lower interest rate
Loan amount is based on an "as completed" value of the home, not the current value
Purchase or limited cash - out refinance
One to four unit principle residences. No manufactured housing.
Any type of renovation or repair is eligible, as long as it is permanently affixed to the property and adds value. Renovations should be completed within a twelve month period from the date the loan is delivered.
Repairs are not limited to inside repairs, they can include roof, electrical work, remodels, HVAC work, new carpet, appliances, new additions, etc.
The best news... the 203k (one of the 3 loan options within the HomeStyle Reno Mortgage) can be obtained with as little as a 3.5% down payment! Other options include a limited 203k and a conventional renovation loan!
Something all three have in common: they cover the purchase price of your home and the cost of improvements, with the support of an appraisal determined by the value of your home once the work is completed, not before repairs and the help of a contractor!
If you don't mind a little extra work required to apply for this loan, it's the perfect way to purchase a home, make some improvements and turn it into your dream home with a simple, affordable mortgage that minimizes your out of pocket costs!
Why settle for someone else's home, when you can basically create your own with this loan?
Contact us if you'd like to know more about these loan options, we would be happy to help!
* Renovations & work orders must be completed by contractor to qualify, no "self-help" options are available with these loans.