BUYING AND RENOVATING YOUR DREAM HOME: A SMART FINANCING OPTION
Are you dreaming of owning a home that’s perfect for you, but needs a little TLC? You might be surprised to learn that there are specialized loan programs that can make your dream a reality. Unlike fix-and-flip programs, which are designed for investors looking to turn a profit, these programs are tailored for homeowners who want to buy and renovate a property to live in.
Imagine finding your perfect home for $800,000, but it needs some work. With a traditional loan, you might struggle to secure financing for the purchase price plus the cost of renovations. But with these special programs, lenders use the property’s value after renovations are complete to calculate the loan amount. So, if you spend $100,000 on improvements, the lender will consider the property’s new value to be $900,000.
With just 5% equity required after renovations, you could secure a loan of up to $855,000 (95% LTV). That’s a significant amount of financing available to help you create your dream home. We recently learned about this program from Scott Johnson of Towne Mortgage, who shared its benefits with Pacific Bay Financial team during our recent conference call. Whether you’re looking to update a fixer-upper or add some personality to a new build, this financing option could be the key to making your homeownership dreams a reality.
Who do you know that could benefit from that? Send this information their way or call me: (415) 225-7920, or email to: mannykagan@comcast.net
Best wishes of good luck,
Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983
NMLS #205637
DRE #00874630