Ever thought about getting a home that needs a little TLC and wondered how to finance both the house and the makeover? Enter renovation loans! 🛠️
Here's the lowdown: These loans are super cool because they cover both the home's price and the cost of those upgrades you're dreaming about. It's like buying a fixer-upper and having some extra cash wrapped into the loan for the facelift. So, let's say you get approved for $600K, but you snag a house for $520K that needs some love. You can use some of that approved amount (let’s say $50K) for repairs, adjusting your total loan to $570K.
But here's the catch: you don’t get handed a wad of cash for renovations. Instead, you've gotta have an approved contractor who sends the bank their invoices, asking for a "draw." Once everything's inspected and approved, the bank pays the contractor directly.
It's a bit more hands-on than a regular loan but for the right house? Totally worth it! Just make sure to keep the communication tight with your contractor and bank. Happy renovating! 🏡🎨🔨
Down Payment Assistance
The cost needed to purchase a home can seem overwhelming. Fortunately, there are several state and federal down payment assistance programs to help with your down payment and closing costs.
Not sure if you can cover your down payment. No problem to see whether you qualify for down payment assistance. Keep in mind down payment assistance is just that assistance you will still need to come to the table with some funds of your own. Down payment assistance is available when obtaining a renovation loan.
Home Buyer Loan Programs
Government Backed Loans
Government-backed loans can allow you to obtain a loan with a low down payment, less than perfect, or even poor credit.
These loans usually offer a slightly lower interest rate than conventional loans. We currently offer the FHA 203K Limited, FHA 203K Standard, and VA renovation loans. Each loan program has its own unique set of guidelines.*
Conventional Loans
Conventional loans typically require a higher down payment, but there are some low-down conventional loans, however, these loans have income and location requirements. Conventional loans have their own guidelines which are substantially different from government-backed loans. We currently offer the Homestyle renovation loan.
*Lenders have their own set of lender overlays on top of the standard guidelines. Buying a home is a deeply personal experience. Yours will not be the same as your friend or family member.
We are approved with 40+ wholesale lenders. Our mortgage broker will locate the best loan for your unique situation. Before you begin your home search it is best to get pre-approved. Being pre-approved allows you to shop with confidence.
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