Renovation Financing

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!

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Dee Marie Fisher

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