Low inventory + high demand= one competitive market!

At this time and with this market buyers have zero privilege of being picky when it comes to finding the perfect home. There are too many buyers and not enough homes for sale to find one that has everything on their wishlist. So what is a buyer to do? Well, create the items on their wishlist they can’t find, of course!

Finding a home that has everything a buyer desires is nearly impossible for real estate agents. That’s why we turn to lenders for help!

Renovating a home doesn’t always have to be a 2-3 year plan after closing on a house or after saving more cash. Lenders are increasingly selling mortgages that allow the borrowers to purchase the home and have room for renovations all under one loan. (Booyah!)

Lenders do this by considering the purchase price- which is supported by an appraisal- and then adding the costs of the remodeling to the loan per builder estimates or architectural plans. From there the appraisal determines the value of the home with the new renovations and the financing is based off of that difference, or the “after improved” value.

Two popular loans used for extra renovating cash are the FHA’s 203K and Fannie Mae’s HomeStyle Rennovation Mortgage.

A lot of first time home buyers and investors are bargain hunting and looking for a good deal on an inexpensive house. Thin inventory does not give them much opportunity for this so they start turning to renovation financing because it allows them the flexibility to make the less than perfect house their dream home.

Don’t fear though- renovation financing can be utilized when refinancing to make improvements to your current home. The plan to get extra cash for home buyers is the same for homeowners.

Have questions? Contact us today or visit our Fort Collins Resources Page to speak with a reputable lender who can get you on the track to get some renovation cash!