There is nothing better than spending a Sunday afternoon doing chores and mindlessly watching HGTV. One trend that has been pretty popular on real estate type shows in the last couple years has been that of fixer uppers and buyers purchasing homes that need complete overhauls. When watching these shows it always seems like the buyer just so happens to be the luckiest person in the world and that normal people who don’t have access to people like the Property Brothers and HGTV type resources could never pull off these kinds of transformations.
This however is a case where perceptions don’t represent reality. The truth is that there are products out there that allow home buyers to completely transform their homes without spending tons of money out of pocket. Not only can home buyers (as well as current home owners) spruce up a home with fun renovations but you can actually have professional designers/contractors go through the house with you to get fun ideas that will transform your home and more importantly give you more value!
Here’s how it works:
Approved buyers who use a renovation mortgage such as an FHA 203k Loan or HomeStyle Renovation Loan can purchase a home, professionally renovate it, and roll the cost of necessary renovations into their mortgage with a 1 time close. If you already own your home you can still participate! Some renovation loans are available in conjunction with refinancing as well.
What’s the Catch?
Aside from qualifying for the mortgage and having at least 3.5% down there is no big scary catch. The house you are renovating must appraise for an amount that equals at least the sale price of the home plus the cost of renovations.
**This article is in no way affiliated with the HGTV show Property Brothers. Nor does this article reflect or share the views and opinions voiced on that show.
**Down payment and terms shown are for informational purposes only and are not intended as an advertisement or commitment to lend. Please contact us for an exact quote and for more information on fees and terms. Not all borrowers will qualify