Home Renovation Loan Information and Blog Posts
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 home renovation 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 home appraisal issues (and maybe yours was one of them?), you may be skeptical about how the home 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.
Did you recently discover that a home renovation loan is the best way to fund your renovations? That’s great! That brand new kitchen you’ve been dreaming of is a lot closer than you think. You’ll also be happy to hear that the process of obtaining one is nearly identical to applying for a typical home equity loan; meaning you’ll enjoy the benefits without any extra hurdles to get there. If you’re unfamiliar with the typical loan qualification process, there are two main factors your lender will look at when seeing if you qualify for a renovation home loan: your FICO score and your Debt-To-Income ratio.
If you’re reading this article, then someone told you the best way to finance your home renovation is with a construction loan. Well, to put it bluntly, you’ve been given bad advice! We get it; you need a lot of money to turn all your home improvement dreams into a reality, and construction loans are attractive because they enable you to borrow based on what your home will be worth after the renovation.
In our previous post, we explained that renovation home equity loans are special because they are based on what the future value of your home will be AFTER the renovation. This key factor dramatically increases how much homeowners can borrow for their renovation. But there is more than one type of renovation loan out there - in fact there are actually 5 different primary options. At RenoFi, the first thing we help homeowners with is understanding which type is best for you.