When you purchase real estate, the home may not be in the exact shape that you prefer. In these instances, you may choose to remodel. Funding that renovation could seem daunting, but a renovation home loan can provide some relief.
A renovation home loan can assist a consumer to purchase a house that has a reduced price because of its current condition and help finance the home, in addition to any needed repairs.
We proudly offer Tacoma-area home buyers a variety of renovation loan programs, including Fannie Mae HomeStyle® and FHA 203(k). What happens is a home buyer can roll what it would cost to perform home updates into the overall cost of the mortgage. The amount of the loan is established based on the assessed price of the house in the future.
This type of program may be ideal for first-time homebuyers who are looking to move into a desired neighborhood but can’t afford a move-in ready house; buyers who want an older home and have little options; or investors looking to purchase a house to flip.
You may be wondering what type of projects qualify. The types of repairs can include exterior remodels, appliance upgrades, replacing or fixing a roof, repairs to the foundation, painting and more. The loans can be utilized for small projects below $35,000 and large renovations projects above $35,000.
If you are looking to purchase a fixer-upper in the Tacoma, Washington area and want to start renovating it at the time of purchase, reach out to one of our home loan professionals and ask about the opportunities our renovation loan programs can provide you.