You found the right location, you just can't find the right home. There are so many great homes on the market today that just don't appeal to today's buyers. Often times, these properties are priced at a point where you can purchase and have instant equity, making you a smart buyer. A renovation loan not only finances the purchase of a home that needs repair work, but also finances the repair work itself. For example, you look at a home priced at $125,000 in a community where renovated or fixed up homes sell in the $170-180's. You can purchase and update the $125,000 home using this product and have instant equity and the home of your dreams. You pick the cabinets, counters and flooring or create that finished basement. You can redo the roof, install new windows, or even something as simple as wallpaper removal and painting. The list goes on and on.
You purchase the home for $125,000, borrow $150,000 and use the additional money to renovate. You now have exactly what you want and place yourself in a smart equity position, which really maximizes your investment potential. All the experts say buy location now and you can have both the right home and the right location.
Renovation loans require a minimal down payment as low as 3.5 percent and have great interest rates. They're also available to borrowers with credit scores down to 620. This type of loan is the right choice for the financially savvy home buyer that is looking to design, create and enjoy their ideal home. We work closely with lenders, designers and contractors that will make your ideas become a reality.