Have you considered Renovation Financing to complete your project?
Renovation Financing Explained:
Many clients of mine zero in on properties that require some additional work. The next question is “how do we pay for these property repairs, and is there a way we can finance them?” This is a key question, and there are actually quite a few ways to make it work. The renovation or rehab mortgage is one of the key areas that a strategic approach to the mortgage conversation can create an unbelievable financial lift.
There are a few versions of the rehab mortgage, and keep in mind you can use the rehab mortgage for PURCHASE, as well as for a refinance.
There are 2 common pathways for accessing rehab financing, the FHA 203K program, or the Conforming Fannie Mae Homestyle program.
Quickly find out how much you qualify for. ⬇️
Why Choose an FHA Loan?
The Federal Housing Administration wants more Americans to buy a house, so let’s all do our part for Uncle Sam.
In addition to working for buyers with low credit scores, the FHA also allows for borrowers with NO credit score to qualify. There are some additional ‘alternative credit hoops” to jump though, but that is fairly simple.
One thing to keep in mind about the FHA is the way the mortgage insurance is paid. The FHA collects its money in two ways:
The upfront FHA Funding fee
The monthly FHA mortgage insurance.
Every year, the FHA assesses their risk exposure to future defaults, and makes adjustments to the required cost for these fees. Presently, the upfront FHA funding fee is 1.75% of the loan amount. The good news is that this fee does NOT come out of pocket, but is actually financed into the loan balance. But as such, this takes a bite out of your equity compared to the low down payment conforming alternative.
Our process will help you compare your options and figure out which financing plan will put you in the best financial position.
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