As the number of homes for sale on the market continues to fall, many homeowners are considering renovating their existing homes or potentially purchasing a 'fixer-upper' using a renovation loan program.
Home renovations have many benefits homeowners love, including being able to stay in your current neighborhood and customizing your home with upgrades like adding additional space or other features you've had your eye on for a while. In some cases, you might even see your home’s value increase thanks to the upgrades.
Purchasing a fixer-upper can also potentially be a great investment as you often can purchase a home below its market value. And purchasing a home in need of renovation has never been easier with the range of home loan programs available for just such a project!
Benefits of Renovating Your Home
There are some obvious benefits to renovating your home, such as getting the amenities you’ve always wanted or updating your home with some modern touches that weren’t available when you bought it. You might even be able to add more space to your home as well.
But there are other reasons renovating your home is a good idea. It may be your home could use some safety upgrades, like replacing an older range or water heater which may be reaching the end of its lifespan, or installing a new home security system to ensure your home is as safe as possible.
Certain renovations, especially energy-efficient ones, can even result in tax incentives and rebates from the IRS. There are also certain loans specifically designed for home renovations. For more details, speak to one of our loan officers to find out what options you have.
Buying A Fixer-Upper
While a fixer-upper will involve a little more hands-on work than buying a move-in ready home, it’s also a blank canvas you can use to create a home according to your vision. You have the chance to create your dream home without having to start from the ground up!
It’s also a good way to start getting into real estate to build wealth. Often, fixer-uppers sell at a lower price than move-in-ready homes, meaning you can allocate more of your budget to fixing it up.
Plus, did you know you may be eligible for special loans with a house that needs significant renovations? And, if your home is “historic”, you may be eligible for tax benefits if you rebuild and maintain the property in accordance with local guidelines. Check with your local government organizations to find out if this is an option in your area.
Evaluate Your Financial Situation
It's important to understand which loan program works best for your specific situation before beginning any project. Doing your research on different loans and being aware of your available options can give you an informed view of what your finished home renovation will look like.
You’ll also want to get an accurate estimate of how much money your planned renovation will cost before starting the process.
Once you know the cost–including things like inspections and permits–and what your loan options look like, then you can decide how you want to move forward. For example, you may decide it’s financially wiser to do your renovation in stages rather than all at once.
No matter what kind of home renovation you aim to do, whether it’s a whole fixer-upper or just an update to one part of your home, it’s always a good idea to speak with one of our loan officers as they will help you evaluate your options and make sure you have all the information you need about your potential renovation.
Start the process today. Find one of our lenders near you to get pre-qualified before you start any projects, and we’ll help you make the process as smooth and enjoyable as possible!
