A 203K Loan Did This?
Top 10 Ways 203K Loans Create Value
Renovation Loans (FHA 203K, HomePath & HomeStyle)  allow buyers to PURCHASE & RENOVATE in one loan with one closing. Gone are the days when two-time close Construction to Permanent loans are forced to be used as Renovation Loans.
Construction to Perm loans are excellent options for buying land and building on it, but they are ill-suited for the Renovation Loan market when you compare them with the current players; FHA 203K, Fannie Mae HomePath & HomeStyle.
So, what are 10 GREAT ways that RENOVATION LOANS create value?
1.) EASY Neighborhood Selection
Want to live in that ONE particular NEIGHBORHOOD, but can’t AFFORD to live there AND get the house you WANT? You can NOW! Buy the CHEAPEST house in the neighborhood and RENOVATE it with FHA 203K.
2.) Streamlined Process
Purchase and RENOVATE with ONE loan and ONE Closing!
3.) Less Deferred Maintenance Post-Close
The average 1st TIME BUYER spends $7,000 – $20,000 in maintenance, repair and replacement on their home in the first TWO years of ownership. Why not REPAIR & REPLACE as part of the loan those OLD appliances and systems that are going to break and COST you MONEY down the road?
4.) Maximize a Property’s Potential
Renovation Loans are based on AFTER REPAIR VALUE. Basing the loan on what the house will be worth once the renovations are complete allows for more room to RENOVATE and unleash the homes potential.
5.) Open the Pool of Potential Homes
Are you an FHA buyer? No doubt you are seeing homes listed as “CASH ONLY” for the offer. With a FHA 203K Renovation loan you can finance the purchase of a home that was previously only available to CASH buyers!
6.) Using the Mortgage Interest Tax Deduction
When you wrap your renovations up in your mortgage you increase your mortgage interest tax deduction. If you pay for the renovations later on a credit card not only do you NOT get any TAX BENEFIT, you also pay higher interest rates.
7.) Improve the WHOLE Neighborhood
When you RENOVATE a home it has an affect on not only that home, but the homes that surround that home. Beatifying the neighborhood raises home values for the NEIGHBORS too!
8.) Go GREEN, Save MONEY
If you are going to upgrade, repair and replace why not make the renovations as ENERGY EFFICIENT as possible? You’ll save MONEY every single month you own the home. GREEN / Energy Efficient homes also have a better RE-SALE value!
9.) Allows MORE Seller’s to SELL
Selling, but don’t have the money to fix your home up first? Small items can cause homes to NOT be eligible for traditional FHA financing. Â That eliminates HUGE pools of potential BUYERS. Market the home with a RENOVATION LOAN and let the buyer FINANCE the repairs post-close.
10.) Ability to Choose SCHOOL ZONE
For the parents out here getting their kids in the right school zone is important. With the ability to shop for fixer-upper and renovate it yourself you can AFFORD MORE home. The home price BARRIERS are lowered for some of the best and typically most expensive neighborhoods.
Those are just 10 of the GREAT WAYS renovation loans add VALUE. There are many, many more ways FHA 203K, Fannie Mae HomePath & HomeStyle Renovation loans are some of the BEST products on the market!
Ready to get see which RENOVATION LOAN is right for you? Fill out the quick contact form to your right and one of our specialist will contact you for a consultation immediately.
More From 203K Mortgage Loans
- How to Write a FHA 203K Purchase Offer | 203K Loans | HomePath Renovation Mortgages – Georgia, Florida, Alabama, SC
- HomePath Renovation Mortgage
- FHA 203K Loans – The Process
203K Mortgage Loans Recommends
- FHA 203k Streamline: Why Choose The FHA 203k Streamline? (Arizona Mortgage Team)
- Buy a House with Low Down, No PMI, No Appraisal? Yes! Welcome to HomePath. (Arizona Mortgage Team)
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