Home Renovation Guide here!
Many people watch there favorite home improvement show and think…how do they do it? How do these couples come up with so much money to renovate there home? Well I know there secretes, and I am willing to share it with you.
They say “We find the worst home in the best area and turn it into your dream home” Well….That is what they do. They start by figuring out there all in budget. Then start the house hunt, looking for a house under budget that NEEDS WORK! Assuming there all in budget is $400,000 and they find a house for $300,000, they should have the $100,000 for renovations right? WRONG! Who has $100,000 sitting around to use on renovations, right. Well here is the trick, they apply for a Homestyle Renovation loan. Did I grab your attention yet? Are you curious to what a Homestyle Renovation loan is?
Well….A Homestyle Renovation Loan is an amazing tool for people! So, your $300,000 house is going to need $100,000 in renovation. You need to get a contractors estimate of material and labor and give that to your mortgage broker! Your mortgage for $300,000 home now becomes a $400,000 loan therefore adding your renovation costs into your mortgage. The bank will pay your contractor! So instead of fronting your $100,000 for renovations you’re now paying that monthly throughout the life of your 30 year mortgage.
Pretty amazing right! Don’t you wish you knew about this sooner? We did too. We also have a link to the Home Renovation Guide at the top of the page!
Here are some benefits for utilizing the Renovation Loan;
- Tax deductible loan payment
- No longer have to push off renovations
- Bank requires timelines to get work done quickly
- Little to no funds out of pocket
- Lowest monthly re-payments for any construction loan/home renovation loan
- Guaranteed increase in value of your home
- No longer Have to set aside funds to save for renovation