Facing aging housing stock and tight markets, more consumers are looking to renovate a new purchase or their existing house to create he home of their dreams.
Making significant home improvements such as adding an extra room or replacing the roof not only makes a difference in how much you enjoy your home, but it can improve its overall value as well.
The top 3 interior renovation projects with the best likely value to the home for resale is:
- Complete Kitchen Renovation
- Kitchen Upgrade
- Bathroom Renovation
According to a study from NAR, 75% of homeowners have a greater desire to be in their home after remodeling. In 2019, 73% of homeowners say they plan to make home renovations.
Renovation Loans
If you aren’t happy with some aging features of your house, or want to buy a home that needs work, you should consider using a home renovation loan to transform a house into the home of your dreams.
What are the Benefits of a Renovation Loan?
The main benefit of renovation loans is that they give you the ability to buy a home in need of repairs and finance those repairs as part of the mortgage. They also have low down payment requirements and great rates.
How does a Renovation Loan Work?
Let’s say you want to buy a home that needs a brand-new bathroom and kitchen. A Renovation lender (like Greenway Mortgage) would then give you the money to buy (or refinance) the house plus the money to do the necessary renovations to the kitchen and bathroom.
Often the loan will also include:
1) A contingency reserve so that you will have the funds to complete the remodel in the event it ends up costing more than the estimates suggested and/or 2) a provision that gives you up to about six months of mortgage payments so you can live elsewhere while you’re remodeling, but still pay the mortgage payments on the new home.
Ready to Take the Next Step?
We’re here to make the renovation home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with a FREE Renovation Loan Quote. We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you. Ready to get started? Reach out today.
