Ever watch shows like HGTV’s Property Brothers and think “Sure, they make it look easy, but it all in the magic of TVland?” I’m here to tell you it isn’t so and you can create your own dream home from a fixer upper. How you ask? It’s all in the magical powers of a wonderful renovation loan product. There are many different products on the market ranging from conventional Homestyle renovation to FHA 203k.
How it works:
- With these loan products, your loan amount will be higher than the sales price of the home. This amount will vary depending on the necessary renovations.
- Your lender will require bids from approved contractors for the repairs.
- You can walk the home with a certified contractor, go over you wishes and dreams to bring the home to your vision.
- The contractor will submit bids and a plan to you and your lender.
- After closing, contractors will complete the approved repairs.
- Once complete, an appraiser will review the completed repairs and your lender will release payment to the contractors.
Many people are skeptical or concerned about undertaking such a project but in all reality, your contractor will be completing the repairs and you can have the home of your dreams with instant equity. While this is simply an overview of the process, there are many areas of flexibility and nuances that can contribute to timelines and pricing. If you think you can’t afford the home of your dreams within your budget, please don’t hesitate to contact me to further discuss the options open to you with Renovation Financing. I have worked with several lenders in the area and can help point you in the right direction.
Northern Virginia REALTOR®
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