Did you know a renovation loan can be used for a primary home, second home, or investment property? FHA’s renovation loan options, known as 203K or 203KS, have a reputation of being a beast and therefore are often dismissed. Fannie Mae has their HomeStyle renovation option which worked to simplify the process. However, with improvements in the process and experience, both of these options are definitely worth considering. A huge benefit is how the home’s value is determined with renovations. The value of the home will be determined by the appraiser based on the construction bids and/or architectural designs. It will be a “TO BE” appraisal… not “as is”. And the buyer can put down the minimum required down payment based on the To Be value (i.e 3% for primary, 10% for second homes, and 15% for investments).
As a buyer, especially a first time home buyer, this market can still feel competitive… because it is. If a home is priced right and staged right, there are still multiple buyers and bid over asking. But what if a home has been on the market for more than a few weeks and needs a facelift, an additional bedroom for the baby, a new roof or landscaping, or just adding an auxiliary dwelling unit in the back yard for additional income. You can help those clients close in 45 days on what will be their perfect home using the renovation option.
Because we believe in renovation options so much, for the last few weeks, I have been sending out lists of homes which qualify for a HomeStyle Renovation loan. Check out this week’s list below. Perhaps you have clients that have been struggling finding the right home. These homes with the use of renovation could be the perfect match.
11 Denver Area Homes:
17 Colorado Springs Area Homes: