Loans to renovate a home have been around for a long time under various names. Wells Fargo and other lending institutes have financing programs that allow for existing homeowners, investors, first-time homebuyer sas well as a multi-million dollar homeowners to obtain a purchase loan to renovate the property after the closing not before. I found it interesting to learn more about the programs so I could assist the sellers and buyers I work with to complete a transaction together quickly and smoothly.
Benefits for the Home Buyer
- Ability to customize and modernize a home to their tastes.
- Finance up to 6 months of mortgage payments and possibly more.
- It is equal to 2 loans in 1; thereby saves time and expense of obtaining 2 loans.
- Able to purchase multi-units (1-4) with small down payment.
- Add equity from the beginning.
Benefits for the Home Seller
- No out of pocket expenses to repair the home before selling.
- Sell properties “as is”.
- No coordinating of construction/renovation work.
- Faster marketing time.
- No implied warranties on work completed.
- Fast closing time.
Acceptable Improvements/Renovations
- Modernization and Upgrades: Windows, Doors, Flooring, Kitchen Cabinets, Countertops, Bathroom Remodels, Painting, Landscaping, Fencing, Roofing, Applicances, etc.
- Additions… like the location but not the size of the home, just add on the rooms needed.
- Foundation Repairs
In today’s market, having this type of financing is a benefit for all concerned because it can move the buyer and seller to reach their goal…. completing a transaction!
