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What Are Renovation Loans?

Monday, July 31, 2017   /   by Amy Paradysz

What Are Renovation Loans?

Have you ever come across a home that is in the perfect neighborhood, maybe it is close to work or offers a family friendly community, and it is right within your price range – but it needs work? Renovations, even simple updates, can be extremely costly. This home that is in the perfect location may not seem so perfect anymore when updating carpets or refreshing the kitchen may throw you way over your maximum price range. Luckily, this problem can be easily resolved with an FHA 203K Loan, or a Conventional Renovation Loan.


An FHA 203K Loan allows buyers to purchase, or refinance a home, that is owner occupied to complete renovations with a down payment as low as 3.5%. A Conventional Renovation Loan offers similar opportunities but accommodates single family second homes or single family investment properties. Down payments on this loan are as as low as 5%.


Renovations that are included, but are not limited to, are updating appliances, painting, kitchen and/or bathroom remodels, energy efficient improvements, plumbing and roof repairs.


Let’s take Terry Scollin’s new listing in Lansdowne for example. This lovingly cared for single family home offers a great floor plan, beautifully landscaped, a large fenced-in backyard, a two car garage and a large driveway. The interior is in decent condition, but could use some personal touches. These loan options allow you to take this “fix-up” home and make it your dream home!


We interviewed our in-house lender, Diane Malley  of Loan Depot to tell us more about these loan options. See what she has to say below:



Contact Diane Malley:


dmalley@loandepot.com
(610) 733-5749


 





When you are ready to list your home, we can help. You will need a team of agents who will prospect daily for potential buyers, advertise your home effectively, show to prospective buyers, negotiate the purchase contract, approve financing, handle all of the marketing from listing to contract and all of the administrative paperwork from contract to close.


The Hardy Real Estate Group is your Real Estate Team. Our objective is to sell your home with the least amount of hassle at the highest price possible. By pricing your home accurately, we will position your home to sell. Your home will receive maximum exposure with our extensive marketing plan, including showcasing it to our own database of potential buyers.


610.784.3279 | www.hardyrealestategroup.com |info@hardyrealestategroup.com