With a renovation loan, you can add renovation projects on a home you buy to the actual mortgage. Watch this video to learn more about them.
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Today I’m joined by a special guest: Barry Krevoy, who is our LoanDepot representative.
We had a situation that came up this last weekend. My buyers are looking for that perfect home that’s turnkey and ready to go. When I talked to Barry about this, he found that they’re well-qualified to get the loan, but he was suggesting that maybe we look into a renovation loan.
So today, Barry will be talking about renovation loans—the different types, and how they all work.
A renovation loan is just like any other loan, except for the fact that we’ll be adding renovation projects on the home to your actual mortgage. There are two different types: a full renovation loan, which you can do a conventional FHA loan on, and a VA renovation loan, which is a streamline loan.
There are also FHA and conventional streamlines. Streamlines are non-structural, so you can put in new countertops, new carpet, new appliances, and so on. No permits are required for this, since it’s not for construction projects.
Today I’m joined by a special guest: Barry Krevoy, who is our LoanDepot representative.
We had a situation that came up this last weekend. My buyers are looking for that perfect home that’s turnkey and ready to go. When I talked to Barry about this, he found that they’re well-qualified to get the loan, but he was suggesting that maybe we look into a renovation loan.
So today, Barry will be talking about renovation loans—the different types, and how they all work.
A renovation loan is just like any other loan, except for the fact that we’ll be adding renovation projects on the home to your actual mortgage. There are two different types: a full renovation loan, which you can do a conventional FHA loan on, and a VA renovation loan, which is a streamline loan.
There are also FHA and conventional streamlines. Streamlines are non-structural, so you can put in new countertops, new carpet, new appliances, and so on. No permits are required for this, since it’s not for construction projects.
It really opens up a lot of options, and takes a house that needed love and turns it into the house of your dreams.
Then there are full-rental loans, where you can add bedrooms, floors, and other larger projects. We have a lot of people that are getting priced out because everybody wants a single-family residence with 2,000 square feet. There might be properties out there where you can add a bedroom, bathroom, or maybe a second story. It really opens up a lot of options, and takes a house that needed love and turns it into the house of your dreams.
In flipping shows like the ones you see on HGTV, they don’t buy a home and flip it using money they have laying around; they use renovation loans to finance it.
As far as benefits go for regular buyers, the interest rates will be a little bit higher because you’re packing more into the loan. On a full renovation loan, you can put six months' worth of payments into the loans, so you don’t even have to make a payment on the house for six months.
Another great fact is that you can use the renovation loan to flip a house, and you only have to put 15% down. We all know on an investment property, you usually have to put 25% down, so there really are a lot of benefits.
If you’re interested in a renovation loan, I suggest you give me or Kevin a call, text, or email. Let’s see whether or not it works for you.
