Purchase renovation loans are an incredible financing option, so today I want to answer three crucial questions people commonly ask about them.
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1. What is a purchase renovation loan? Actually, it is exactly what it sounds like. This loan type allows buyers to take out a mortgage that will cover the cost of purchasing and renovating a home. For example, if you find a home worth $300,000 that needs about $25,000 worth of work, securing the property using a purchase renovation loan would allow you to put down as little as 3.5% of the combined amount. Renovations will begin after closing and can often be completed before your first mortgage payment is due.
I have personal experience with how this financing option can help buyers purchase for less and build wealth through real estate.”
2. What property types will this work for? Actually, you can use this financing option for any one- to four-unit property. This includes condos, townhomes, single-family homes, and more. Loan limits do apply, though, so buying into a higher-cost area may not be possible.
3. Why haven’t I heard about these loans before? FHA 203(k) and conventional loans are widely available, but purchase renovation loans are a niche product. You will need to work with experienced mortgage and real estate professionals to take advantage of this loan type. I bought my first home at 26 with a purchase renovation loan, so I have personal experience with how this financing option can help buyers purchase for less and build wealth through real estate.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.