Renovation lending can be the stepping stone that helps borrowers improve their home or location, build equity or set them up for future financial health and success. Here are four real-life examples of how renovation lending saved the day for borrowers:
- A Veteran borrower was disabled and looking for a home to help meet their needs. With a VA Renovation loan, they got 100% financing to purchase a home and also get the funds to convert it to meet ADA standards – including kitchen and bathroom modifications, wheelchair ramps and an accessible driveway.
- A borrower and their brother inherited a property from their parent. The home was owned free and clear but had significant deferred maintenance. An lien was prepared and filed by the title company for the brother’s portion. And by utilizing a Fannie Mae® HomeStyle® to cover the repairs, the brother was paid for his portion at closing.
- A family moving to a new area had six children but struggled to find a home with enough bedrooms. But by qualifying for an FHA Standard 203(k), they purchased a home and modified the basement to build the additional bedrooms they needed
- A borrower’s property had suffered major fire damage and sat on the market for seven months, causing multiple price drops. But with the help of an FHA 203(h), the borrower successfully rehabbed the property and even picked up $275k in equity once repairs were complete
There are lots of different renovation loan programs that can tackle small or large projects. Call us for more details!
