One thing I have noticed over my career, with each decade that passes by buyers are less willing to purchase a home that needs work. In some scenarios they don’t even want to deal with simple painting of a home. This causes a few issues when house hunting; competition and inventory.
There are limited new homes and limited existing homes that appear to be shiny and new. Buyers are now competing for the few “good” properties that are available, often getting caught in bidding wars or possibly settling for a home that isn’t in the neighborhood they want.
If it is difficult to find what you want in a neighborhood, or you find yourself saying “this house could be perfect if_______.” You should be considering a Renovation loan.
Stop looking for the perfect home and look for your ideal location. That tired house on the street you want to live on can become the perfect home with just a little imagination and the right mortgage. Your options for Renovations: FHA 203k, Fannie Mae Homestyle and there is also a VA Reno program.
What can you do with a reno loan? Just about anything you can imagine other than tearing down a home and starting from new. It can be as simple as a new HVAC system, a new roof, Flooring. Or step it up a little to new kitchens and baths or even additions to increase the size of the home. (The VA doesn’t allow for structural work just yet, but the K or the Homestyle certainly will). As the Nation’s #1 203k lender we see a lot of reno loans and countless buyers building instant equity once the work is done.
How does it work? Simply- think of acquisition costs. You are buying the home AND the renovation costs. Purchase price + Renovation Costs = Acquisition cost. That Acquisition cost will be the basis for your down payment and your mortgage. For most projects you will need a general contractor- it is rare that any lender will allow the home owner to do the work. The appraisal will be done as an after improved appraisal. The buyer will close on the home as any traditional financing but there will be money left over sitting in an account to pay the contractor as the work is done. In a short period of time you will have a home to be proud of that is done exactly as you wanted and in the location you had hoped for.
Obviously that is simplified since every scenario will be unique, but the basics are all the same. What are you waiting for? Stop hunting (and overpaying) for the perfect home. You can buy any home and make it perfect for YOU and your family.
Call me for all your residential lending needs!
Robert Rauf
Mortgage Loan Originator NMLS# 248937
http://www.homebridge.com/RobertRauf
or my blog: http://activerain.com/blogs/rrauf
Office: (732)908-4868 Cell (732)740-0175
RRauf@HomeBridge.com
www.RobertRauf.com
Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, Manchester 08757 08733, Manahawkin 08050, Robert Rauf is a Licensed Mortgage Loan Originator in New Jersey
a Licensed Mortgage Loan Originator in New Jersey
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