There is a trend in modern real estate that I like to refer to as the “HGTV” effect. It seems one of the more popular things to watch on TV is the shows about flipping or renovating old homes to give them a modern and refreshing identity. As I take buyers out, or sit open houses, you will see the concept of these shows transfer to the actual buying experience for people. They will walk into a home and mention comments about blowing out walls to “open things up” or remodeling the kitchen to give the house a “more modern feel.”
The obvious barrier to entry on actually doing some of these finishes to a house is the cost of hiring someone to do the project, or the lack of time/skill to do the project yourself. I took a class this past week that presented an excellent solution to these problems. That solution is a renovation loan.
Renovation loans build the cost of having a professional contractor perform a renovation into the loan so you (the buyer) can have all those modern updates done without having to worry about fronting extra cash, or put in the man hours to do it yourself. The terms and qualifications for these loans are relatively close to normal financing, and the process is becoming more and more stream-lined. Fairway Mortgage even has a list of approved contractors they have worked with in the past to make sure the work is done up to their standards. In the video below, I host Brittney Hansen to talk a little more about Reno-Loans. If you have more questions we would be more than happy to answer them!