Ready to purchase a home, but realizing there are only outdated houses on the market? The truth of the matter is: this dilemma is happening throughout the country.
The housing inventory is low, which is causing home buyers to compete for sub-par housing options. “Move-in ready” comes with a price tag that many first-time home buyers cannot afford. Enter HGTV and the house flipping phenomenon! Thanks to shows like Fixer Upper and Flip or Flop, future homeowners can now envision the potential in outdated homes. The problem – how can a first-time home buyer renovate a home? The answer – with a renovation loan!
At Direct Mortgage Loans, we offer a variety of renovation loan products:
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FHA 203K
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Fannie Mae HomeStyle
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VA Renovation Loan
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USDA Renovation Loan
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Jumbo Renovation Loan
Each loan product is designed to finance the purchase and renovation of the house. However, there are specifications for each product. Your loan officer can help you determine which option is best for your financial situation.
How much can I borrow for the renovation?
When we say “renovation,” we’re talking about an improvement to the property (i.e. updated kitchen, repainting the house, correcting any defects, etc.). The loan product you select will indicate the amount you can borrow. Keep in mind that not all renovations are big! If you want to simply update the home’s cosmetic appearance, a renovation loan gives you the possibility to purchase a home and receive “cash” for the cost of the updates.
Why should I consider a renovation loan?
Renovating an outdated home is an investment method. Consider this: there’s an entire niche market for house flippers. If it wasn’t profitable, this would not exist. While the market may not have a lot of beautiful homes in an ideal first-time home buyer budget, there are diamonds in the rough. With a little work, a renovation of an outdated home could earn you additional equity.
Before you decide that now is not a good time to buy because of the market’s inventory, consider a renovation! You could have the home of your dreams…you might just have to design it yourself! Contact our team to talk about how we can make your HGTV dreams a reality.
