RenoFi - Blog
Before RenoFi came along, the two most common options for buyers looking to buy and renovate a home all in one loan were Fannie Mae Homestyle Renovation and FHA 203K loans. And while they both allow you to borrow money for both the purchase and rehab of a home, there are a few notable differences that make Fannie Mae Homestyle Renovation loans the better choice over an FHA 203K for many homeowners.
When someone mentions getting a loan, you probably automatically assume you’ll need to talk to a bank. Most people never even consider a credit union, often because they don’t know anything about them. But the truth is, they’re able to offer some game-changing benefits that a big bank can’t. Credit Unions vs. Banks Just like banks, credit unions accept deposits, originate loans, and provide a number of financial products and services.
Before Current Home: Location: Villanova, PA Built in 1958 2,768 sq. ft. 5 beds, 3.5 baths Valued at $780,000 After The Renovation: Additional ~350 sq. ft. Transform 3rd floor into full Master Suite Redo the back porch with fire pit & add new front porch Total Cost: $256,000 Post-renovation value: $900,000 When DJ and his wife, Vanessa, found RenoFi, they were just about to close on a traditional construction loan, having accepted the fact that they would need to refinance their first mortgage to do so.
Before Current Home: Location: Ardmore, PA Built in 1940 1,700 sq. ft. Valued at $385,000 After The Renovation: Additional 700 sq. ft. Full eat-in kitchen, with heated floors New master suite with luxury bath Total Cost: $185,000 Post-renovation value: $550,000 When Ken and Katie bought their current home in Ardmore over 11 years ago, it was a great starter home for the two of them. Since it lacked the qualities they envisioned in their forever home, like a true Master Suite and large, eat-in kitchen, they were prepared for an eventual move.
The FHA 203K loan used to be the go-to solution for homebuyers looking to finance both the cost of purchasing AND renovating a new home. But today, that’s no longer the case and both mortgage bankers and realtors will often avoid suggesting FHA 203K’s to their clients. Why? Three primary reasons: 1) If You Snooze, You Lose Imagine this scenario: a home has come up for sale on the perfect street.
The Tax Cuts and Jobs Act of 2017 has reduced a number of tax breaks for homeowners, which may have you wondering about its impact on home equity loans. While all home equity loans were previously tax deductible before the new tax law, it will now depend on what exactly the loan is being used for. Here’s a simple breakdown of what the tax reform means for your home renovations.
When buying a new home, your mortgage lender will order an appraisal to evaluate what the home is worth today. When you’re applying for a renovation loan like RenoFi’s renovation home equity loan to finance a home renovation project, the lender will want an estimate based on the future value of the home. But how does an appraiser determine the value of something that doesn’t exist yet? Here’s how “As Completed” Appraisals work.
RenoFi went to the Philly Home Show in January with the goal of educating homeowners on financing their renovations, but you all actually taught us a lot too! Check out the top 3 things we learned from homeowners at the Home Show. Sharing renovation financing tips A Lot of People Actually Do Plan Ahead! We were certainly impressed by how many homeowners were already planning for renovations in 2020 and beyond.
Ever have a home appraisal come back and show a very different value than you expected? When you decide to buy a new home, sell your current home, or refinance your mortgage, an appraisal is a key part of the transaction. But with 20% of home closings delayed due to appraisal issues (and maybe yours was one of them?), you may be skeptical about how the appraisal process really works.
Realizing that it’s possible to turn your current home into a home you love is a great feeling. Discovering the smartest way to do it is even better. Once you know how to qualify for a renovation home equity loan, it’s time to gather everything you need to apply. Utilize our helpful checklist with all items you need to apply for a renovation home equity loan and get ready to make that dream home of yours a reality.