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:

1. Complete Kitchen Renovation
2. Kitchen Upgrade
3. 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.

A USDA loan is a mortgage loan backed by the U.S. Department of Agriculture (USDA). In fact, they are available to millions of primary home buyers in eligible areas. So, if you’re looking to buy a home, this might be the right mortgage choice for you.

Don’t let the term “rural” fool you. This type of loan is available in many suburban areas as well. Most of the country is in what the USDA considers a qualified rural area. But, it’s still important for prospective buyers to check a home’s eligibility status before going too far! To see if a property is eligible check out the USDA Property Eligibility Map Here. (Note: the USDA updates its list of eligible rural areas annually).

WHY USDA?

One of the advantages of a USDA loan is that it requires no down payment. You can finance up to 100% of the property value. More advantages include:

• No Down Payment (100% financing)
• Lower-Than-Market Interest Rates
• Low Monthly Private Mortgage Insurance (PMI)
• Flexible Credit Guidelines
• Ability to Finance Upfront PMI

First-Time Home Buyers

A USDA loan is great for first time home buyers that often have little money to put down on a home. The USDA mortgage is 100% financing with secure 30-year fix rate terms.

However… it’s not JUST for First-Time Home Buyers

You do not have to be a first-time home buyer, but you have to agree to live in the property as your primary residence. It’s essential to find the neighborhood in the ideal location with the amenities that best fit you and your family whether you’re looking for a home in a rural area or not.

Tips to Finding the Perfect Neighborhood:

• Make of list of the activities (movies, health clubs, churches – you engage in regularly and stores you visit frequently. How far would you travel from each neighborhood to engage in your most common activities?)
• Check out the school district
• Check crime
• Look for economic stability
• Consider resale value
• Do a walk-through of each neighborhood

Ready to take the next step?

A pre-approval should always be step #1. Click below to get started or visit our website here to learn more about USDA Loans. If you have any questions contact us today 732.832.2967.

• Potentially secure a lower rate and monthly payment
• Mortgage rates are typically lower than credit cards or personal loans
• With improvements, you could increase your home’s value

• Lower Mortgage Payments
• Lower Interest Rates
• Shorter Loan Term
• Switch from Adjustable Rate Mortgage (ARM) to a Fixed Rate Mortgage
• Private Mortgage Insurance (PMI) may be transferred or not required at all. (If PMI exists on current loan, it must be transferred to a new loan. If no PMI exists, it may not be required).

• New Kitchen or Bath
• New Pool
• New Roof
• Structural Repairs
• Updating Flooring and Appliances