Renovation loans can be useful to those who are on the hunt for a home and realize they just can’t afford the home they want. It can be hard to find everything you want in a home, but if you use a homestyle renovation loan, you can fix up a home so that it has everything you want. Fixing up a home can be a lot of work whether it’s for personal use or as an investment, but we would be happy to get you the information needed to make sure you get the financing needed.
What Is A Renovation Loan?
If you are considering purchasing a home but it looks like the home is in need of repairs and you aren’t sure if you can afford to purchase the home and fix it up, this type of loans may be the options for you. Or perhaps you own a home and would like to update the backyard or get new flooring, this type of loan can be used for that as well.
Types of Renovation Loans
You might be surprised that you can get funding to fix up your home but you might be even more surprised that there is more than one type of renovation loan available.
The FHA 203(k) loan is available to those with lower credit score and usually have more upfront fees. These loans are typically used when a home needs extensive or serious repairs in order to make it livable.
The EZ “C”onventional loan is used with conventional mortgages in order to make repairs to the home that add value to the property. These repairs are typically things that aren’t as costly like a new roof which involves structural repairs.
A jumbo renovation loan is used when the repairs are being done on a home that already costs quite a bit more than you would find with a home that has a conventional mortgage. Jumbo renovation loans usually means an appraiser is involved and they also must add value to the home.
USDA Rural Development Home Repair loans are offered by the USDA to help those that want to buy a home but might need some financial assistance in order to move forward with the process. These loans may be used to on structural repairs like plumbing or electrical improvements in order to make sure the home is safe and livable.
What If I’m A First Time Buyer?
Many first time buyers cannot afford a home that is ready to move in on day one so a homestyle renovation loan is also an option for you. These loans can provide a low interest rate and keep it affordable for you if you are trying to purchase a home for the first time. It also simplifies things so that you are only paying one payment versus paying off multiple loans. A renovation loan can be used for updates to an older home or to add additional living space or make improvements to the design or functionality of the home. This is a great way to add equity to the value of your home or improve the equity in an investment property.
Contact Us Today!
The best way to figure out which renovation loan is the right choice for you is to get started on your research and reach out to a lender. You’ll want to discuss this with more than one lender in order to get the best rates and deal for the property you have in mind. We would love to answer any questions you may have, so don’t hesitate to reach out to us at JZ Mortgage Services in Bradenton, FL today!