“This home would be perfect for us — what a shame the entire roof needs to be replaced.”
When we hear comments such as these from our homebuying clients, we understand and share their frustration. The need for a costly repair to the otherwise “perfect home” can feel financially daunting and sink a deal.
But that doesn’t have to be the case.
Let’s Talk About Home Renovation Financing
Put simply: Renovation loans allow you to roll the cost of updates or repairs on a home you are buying right into your mortgage loan. From large undertakings, such as roof replacement or structural reinforcement, to smaller projects like updating baths or installing new flooring, homebuyers can get the financing they need without having a separate loan or payment to worry about.
There are several types of renovation loans, but they all have one thing in common: The renovations or repairs must add value to the property, so some projects will not qualify. However, renovations such as upgrading a kitchen, insulating attic space, installing hurricane-proof windows and doors, and much more can increase your property value by more than the renovation costs, thereby qualifying for a renovation loan.
Renovation Loan Options & Expert Guidance
There are various renovation loan options available to you, but they generally fall into two categories. One type is based on the projected cost of the renovation project, and the other is based on the projected value of the home once the improvements are complete. Additionally, some options within those two groups will require receipts and/or proof that funding is paid directly to a contractor.
For the best advice on which type of renovation loan is the best choice for you, we recommend connecting with Shari Pardue, our financing partner at Prosperity Home Mortgage in Coral Gables. Shari has assisted many of our clients in securing renovation financing so they wouldn’t have to pass on the home they truly wanted to buy.
Finding your perfect home doesn’t mean finding a home that’s in perfect condition.
Unless it’s new construction, there will likely be some improvement you want or need to make to the home you want to buy.
And there’s also almost always a reasonable solution.
When you’re ready to find your perfect home, contact us. We’ll do the hard part so you can enjoy the fun part.