Are you interested in buying a "fixer" but wondering how you can finance the improvements without have two loans outstanding? A "rehab" aka "renovation" loan might be the answer.
By way of example, let's say you are qualified for a home loan of $400,000. You find a home for $350,000 that could be worth $400,000 or more once you have made improvements. With a renovation loan, the bank considers the estimated value of the house AFTER the improvements. The money for the improvements is rolled into the loan for the house, so you are essentially financing the work at the rates for a 30-year conventional loan instead of taking out a second (typically higher interest) loan, such as a home equity line of credit.
Although I have used the example of buying a "fixer", this type of loan is also available for any home you might want to buy and renovate to your own tastes.
If you'd like more information, give me a call. 206-708-9800.
Single adults face unique challenges when buying and selling a home. I know because I've done it myself, & a significant portion of my clients are single. This blog provides news & information you need to help you achieve your real estate goals. Alice Kuder, REALTOR®, Green. Prudential Northwest Realty Associates, Seattle, WA
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