With the current housing market going strong, shopping for a new pad has become a bit of a challenge. Yes, homeowners are able to sell at higher prices, but they also have to buy at those higher prices, which (let’s be honest) isn’t as much fun. This real estate boom has created problems for buyers without the cash reserves to handle the larger down payment and closing costs required, rendering some folks stuck in their current property and others having to purchase a lesser house than they had imagined. With the help of renovation loans, though, everyone has a shot at their perfect place, providing they have the vision and patience to see it through.
It’s okay if you can’t afford to buy that turn key beauty. That doesn’t mean your dream home is out of reach; it just might take a little longer than you had anticipated. Homebuyers with open minds and flexible timelines who can see the potential within a seemingly undesirable property will fare the best when browsing fixer-uppers because it doesn’t just take money to create a beautiful home. It also requires equal parts creativity and time.
If you have both of these things secured, then there are a variety of mortgages out there to help simplify the financial end. The most convenient mortgage options for homes in need of renovation are single close loans like the Fannie Mae HomeStyle that allows for the cost of any necessary repairs, both structural and cosmetic, in the total loan amount. There are also a handful of mortgage types available to those with lower credit scores, although the interest rates are typically less competitive and the application process can be more extensive. Either way, this type of lending allows dreamers to get their hands on both the funds to cover the intended property and the money it requires to transform their vision for that property into a reality.
The current market has placed a lot of folks in a position where they either have to downsize or stay put and turn their current home into their dream home. For those who need to simply stick it out, it can be difficult to see the hidden beauty in their own space - but what you see is not always what you get. There are plenty of home improvement shows out there to motivate and inspire homeowners to uncover the true potential of their own domain. New to the world of home renovation and unsure where to begin? Browse through House Beautiful’s long list of helpful articles designed to turn even the least handy homeowner into a DIYer.
Once you have that list of projects in order, it’s time to figure out how to pay for them all. For those willing to refinance, there are a few lending options available to include the desired renovations on top of the mortgage. EZ “C”conventional loans can partner with the traditional mortgage for cosmetic remodeling projects which will increase the property’s value. These repairs can be both mandated by an appraiser or at the request of the borrower, giving you the freedom to upgrade your home as you see fit. For homeowners tackling larger projects on high-dollar homes, there are Jumbo Renovation loans that work in a similar fashion. Again, this type of lending comes alongside a conventional mortgage and can cover both appraiser-required or borrower-requested remodels that add value to the home. It does not, however, cover any structural renovations.
For those working with smaller budgets who aren’t confident they are in a financial position to take out additional loans, check out Ruoff Home Mortgage’s past blogs on DIY kitchen projects and affordable bathroom updates that can potentially beautify your space without the aid of a lender.
Houses are literally selling like hotcakes these days, but unfortunately, they are much more expensive. As such, homeowners need to stay open-minded and find new ways to get their hands on that dream house. Finding the perfect match at the perfect price might just take you longer than that lengthy remodel you’ve been talking about for years anyways, so what are you waiting for? Get started today with a quick and easy online application, and you might be able to kiss your days of house hunting good-bye before they even begin.
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