If you plan on buying a home that needs some repairs, you may want to consider applying for a renovation loan. Unlike traditional fixed-rate or adjustable-rate mortgage programs, renovation loans allow you to borrow funds based on the expected value of the house after repairs. Renovation loans are a great way for you to buy a discounted home that needs a little TLC.
Keep in mind that traditional mortgage programs only allow you to borrow based on the current value of the house. Therefore, if you plan to pursue a home in need of maintenance with a lower value than what the owner currently owes, then a traditional mortgage will not work. If you find yourself in this situation, you should apply for a renovation loan and allow one of our experts at MortgageDepot help you find the financing you need to repair the home and dramatically increase the value.
Here are a few highlights of our renovation loans and what you can expect from our network of lenders:
- You can complete the necessary repairs on a single draw.
- A certified appraiser performs the single final inspection.
- Property types include primary residences, one to four unit properties, one unit second homes, condos, PUDs and investment properties.
- You are eligible for a 95 percent loan-to-value on the improved value of the home.
- The home improvements must be permanently affixed and add value to the property.
At MortgageDepot, we strive for quality in every loan program we offer. We can help you find a renovation loan based on your credit score, debt-to-income ratio, loan-to-value and assets. Our mortgage experts understand what it takes to qualify for certain loan programs, and their expertise ensures that you will find a program that fits your need and your budget.
If you are an experienced investor or a first-time homebuyer, a renovation loan is a wonderful alternative to traditional mortgages. Obtain the financing you need to buy a discounted foreclosure as an investment or a future dream home. We can also help you qualify for a renovation loan for repairs of $15,000 or less. No matter what circumstance you find yourself in your home buying journey, we are ready to help.