It’s becoming a seller’s market, and both you and your homebuyers are feeling the squeeze. According to the National Association of Realtors, the one key factor that has held back home sales as of last year and early this year was simply the lack of inventory. But, we have exciting news: Your list of potential homes has just grown with renovation loans!
Renovation loans are a great alternative for your clients because they can remodel to create their dream home. Potential homeowners have the opportunity to look beyond what exists, which gives you more properties to show.
What is a renovation loan?
A renovation loan is designed to provide a single loan that covers both the purchase price of a property and the costs of renovating it. The loan amount is based on the improved value.
What kind of improvements can my clients make?
Required repairs can include:
·replace a roof
·foundation repair
·upgrading electrical
·mold remediation
Optional repairs can include:
·kitchen updates
·bathroom remodel
·adding a pool
·outdoor kitchen
·energy-efficiency improvements
·new flooring
Who can use a renovation loan?
A client who wants to purchase a property that needs repairs or upgrades or a client simply wanting to purchase a property that they like, but don’t yet love because of changes or repairs that need to be made.
Broaden your housing inventory and show more, sell more. To learn more, contact a loan officer in your area today!
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