There is an interesting loan program out there today. It’s called the Purchase & Renovate program, and is offered by one of the leading mortgage companies in the nation. Within this program you can finance the purchase and the renovation cost together into one loan.
• More money; The amount of money you are permitted to borrow for the purchase and renovations is based on the increased value of the home after improvements are made, and according to our local representative the values after considering renovations have a value of 110% value on work to be performed.
• Lower payment on going payments; Renovation costs are spread throughout the entire term of the loan.
• Tax deductibility; The interest on the cost of your improvements, included in your mortgage, may be tax deductible.
• Convenience for you the new Homeowner; Start customizing your own improvements after closing. There is no reason now to pass up a house that’s in the ideal location but needs your own personal touch through remodeling!
• Keeping it Simple; One loan closing, one closing to attend and one payment each month
Recommended for the homebuyer who;
• Is interested in buying a house either in need of renovations or fixes, but want to avoid going through the hassle of getting two separate loans.
• Need extra financing to improve newly purchased property.
Why not simply get a 2nd Mortgage or HELOC to fund renovation projects? It’s simple, funds you are permitted to borrow with this program is based on the home’s value after improvements are made not based on purchase price before improvements.
Another tool out there for the Buyer who I have walked houses with who finds a house in a perfect location or home with great pluses, but also has quite a few negatives. This is an exciting loan program that today offers many possibilities. Customize that house and make it your own!
If you are in the process of starting your home search please contact me. I would be happy to assist you and to direct you toward this program and the qualified individuals who originate it!
