Have you always dreamed about buying a so-called “fixer upper” and turning it into your dream home? If so, you might be able to do it by applying for a home renovation loan. These types of loans can provide qualified home buyers with the money they need to fix up a property when they first move into it. Learn more about home renovation loans and see if one might be right for you below.
What is a home renovation loan?
First things first: Let’s discuss what a home renovation loan actually is. It’s a loan that you can take out when you’re buying a home that gets wrapped up into the mortgage loan that you’re getting to purchase the home. This type of loan will give you an opportunity to buy a home for a low price point and fix it up to make it more valuable in the end. There are some people who utilize these loans to turn fixer uppers into their dream homes.
What can a home renovation loan be used for?
If you’re able to secure a home renovation loan from a lender, it can be used for almost anything that you want. You can use this type of loan to remodel a kitchen or bathroom. You can also use it to replace an HVAC system. You can even use it for things like mold remediation if you would like. However, more often than not, people use these loans to make a beat-up house look dramatically better once it’s done being renovated.
How can you obtain a home renovation loan?
To obtain access to a home renovation loan, you’ll need to find a lender that specializes in offering them. Many mortgage companies have started to offer these types of loans, but not all of them do. Once you’ve found a lender willing to extend a home renovation loan to you, you’ll also need to figure out how much extra money you want to borrow for your home. This will require you to come up with a home renovation plan so you can decide how much it will cost you to pull off.
Considering taking out a home renovation loan to fix up a house you’re going to be buying? Scott Merle Builders has experience helping homeowners carry out the renovations they want to perform. Call us at 315-409-4124 to learn more about how you can use a home renovation loan to your benefit.