Renovation loans are a hot topic! Most borrowers try to figure out how to do as little renovation work in the loan as possible to meet minimal appraisal standards and keep the loan amount down. Some want to save some work for after closing for themselves to do but several renovation loan customers have buyers remorse in that they wish they would have done all of the projects they were thinking about up front so they could have started enjoying them right away or otherwise found later didn’t have the extra cash to do themselves. Use Homestyle, 203k or Va Renovation to build your dream home and to make that dream instantly a reality!
In the new renovation era, most customers are doing more and more preferential work than required repairs. Our advice is to try to get all of the work you are thinking about done up front in one simple transaction. In your bid process, write down all of your “wants” so you can comparison shop an apples-to-apples quote with your contractors.
On average, the consumer will spend between $5,000 and $8,000 in improvements and appliances within the first year of ownership, regardless of loan type. Why take more money out of pocket when you could use this in the entire project and keep more cash on hand and get a tax deduction from your mortgage?