Renovation financing meets demands in today's market

Mortgage and Lending with Wells Fargo Home Mortgage

With perhaps a still growing number of distressed properties for sale nationwide, the need for renovation financing stands out as one of the most needed products for today's changing Real Estate marketplace. There are many foreclosed properties available everywhere.

Traditional loan programs not only require that utilities are on and working at the time of an appraisal inspection, but the appraisal is required to note deficiencies at the time of inspection such as leaky roofs, peeling paint, holes in drywall, and even major defects in flooring. Loans may be turned down if the property is deemed not to be inhabitable, and many lenders don't have ready solutions for these common problems. In many cases the buyer or seller may be required to escrow 1.5 times the amount of the highest bid to cure the defect and we see transactions which can fall apart because neither the buyer or seller is willing or able to put up such funds. Consider the cost of a $15,000 septic upgrade, for instance. Who's willing and able to put up the $22,500 that may be required to close the loan?

Enter renovation financing: one simple loan, money for the purchase and renovation all rolled into one transacttion. No copper plumbing - kitchen missing - leaky roof - NO PROBLEM.

The FHA 203k even allows owner-occupants to do the work they're able to themselves. Once considered a "nighmare" to navigate through to many, the FHA 203k Streamline renovation loan is a very simple and fast solution to problem Real Estate for sale.

Other conventional renovation loans are available as well for investors and for homeowners. You can find additional information at

Comments (3)

Frank Schulte-Ladbeck
Frank Schulte-Ladbeck Professional Real Estate Inspections - Houston, TX
An informative post Harry. Welcome to the Rain. You will find some good networking opportunities here that can help you. If you are focusing on a specific region, you may want to use Localism. When posting to a region required heading, you can reach your targeted audience.
Mar 22, 2008 11:07 AM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

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Troy Trumm
Mar 22, 2008 01:24 PM
Benjamin Clark
Homebuyer Representation, Inc. - Salt Lake City, UT
Buyer's Agent - Certified Negotiation Expert

Welcome to Active Rain! For some tips on how to get started here, check out my blog entry at ActiveRain Fast-Start Tips for Quick and Easy Points

Happy blogging and good luck!

Mar 22, 2008 06:08 PM