If you’re like most people, you probably dream of owning your own home one day.
With property prices skyrocketing and wages remaining stagnant, many young adults feel like they may never be able to afford their own homes. Thankfully, various affordable housing options can help you achieve homeownership sooner rather than later. If you’ve always wanted to buy a house but could not find the right place or the right price for it, a Renovation Loan might be the solution for you. With a renovation loan, you can buy any fixer-upper and give it the makeover of your dreams. All you need is a slab, a wall, and a previous certificate of occupancy.
Here are some things you should know about these loans if you’d like to learn more about them:
A Renovation Loan is a type of financing that lets you borrow money to purchase a home that needs repairs. These loans are also known as home improvement loans, home improvement financing, or fixer-upper loans. With a Renovation Loan, you can buy almost any fixer-upper and give it the makeover of your dreams—all while gaining ownership of a home. Keep in mind that a Renovation Loan is different from a home equity loan: with a Renovation Loan, you borrow money against the future value of the home—not the equity it has.
The amount you can borrow with a Renovation Loan will depend on the value of the home you want to buy, the cost of needed repairs, and your ability to repay the loan.
Although you can use a Renovation Loan to buy just about anything—including a house with a structural defect—you’ll usually want to use this type of financing to purchase a fixer-upper. A fixer-upper is a home in need of repairs, and it’s typically sold for less than its appraised value. A fixer-upper can be any home—a house, apartment, condominium, or even a plot of land. You can also buy an older home and use a renovation loan to make repairs that bring it up to current building codes. If you’ve always wanted to buy a fixer-upper and make it the home of your dreams, a Renovation Loan may be your solution.
It’s a lot of work and we have many resources to help you make this journey worthwhile. We can assist with the coordination. Not all companies do these types of loans, but we LOVE them!!!
If you’re serious about buying a fixer-upper, a Renovation Loan could be the right loan for you. But before you jump at the first offer you get, find a loan that best serves your needs. That's what we are here for. If you find the right lender, a renovation loan could help you achieve homeownership sooner than you would have without it.
To learn more on how you can take advantage of this program, connect with our Renovation Loan Specialist Samir Maignan