Colorado’s Real Estate market is continuing to be in demand which is making for a very competitive market, such as last year. There is no reason to expect this to slow down anytime soon due to our state’s popularity. Per U.S. News, the best places to live in the U.S. 2017, Denver is listed as No.2 and Colorado Springs No. 11.
With prices in Denver’s market still increasing this will create an increase in real estate offers, multiple offers on one property. This creates not only stress but also strain on the budget. This may be the time to start thinking outside the box! What I am referring to is a renovation loan.
What is a renovation loan?
Are you familiar with or have you heard of FHA 203k or Homestyle? Both of these loan programs have been around for a long time. Typically not many know about them because either they have never had a need for them so there is no reason to explore or were not aware they exist. It’s not common for a Real Estate agent to mention nor a lender unless there is a reason.
Let’s take a minute to learn more about them and you may discover that this could be a great option for you and open you up to a whole new perspective when looking to purchase a home.
Renovation loans allow you to finance the cost of rehab/renovation for the house into your mortgage. One loan, one rate, one mortgage payment. This loan creates opportunity, so long as you are willing to look outside the box. Are there any homes in a lower price range that hold all your criteria except it just doesn’t have an updated kitchen, bathroom, carpet, landscaping, etc.? If you have the vision, then this may be the perfect loan for you.
You can also refinance with a renovation loan. If you have been holding off on specific renovations due to lack of funds, or debating if you should take out a second mortgage (home equity line of credit, HELOC). Then this may be worth looking into as an alternative. This loan can help you tackle most, if not all, of those “to dos” you’ve been waiting and wanting to get done.
Realtors who are more familiar and informed on renovation loans can help open more possibilities for their clients. Taking them out of the box and presenting new views of the homes they show them.
We have been doing renovation loans for 8+ years. We have also taught a credited continuing education course for Realtors. Renovation loans can be pretty fantastic. To learn more about them and to see if you qualify give us a call.