If you are planning to remodel, there’s a really good chance that you’re considering your options on how to finance it. After all, a renovation can be expensive and it’s not uncommon for homeowners to need to find $100,000 or more to tackle their entire list of projects. But let’s not forget that when you renovate, your home’s value typically increases. In fact, we estimate that an additional $75k is added for every $100k that’s invested.
Home renovation loans use the after renovation value of your home to determine how much you can borrow. This key factor makes them an attractive choice for many homeowners, because it often allows you to borrow more. Read more about how this works here. Each type of home renovation loan is best for different types of situations. There are RenoFi loans, construction loans, Fannie Mae Homestyle loans, and FHA 203k loans.
If someone has told you that using a construction loan was the best way to finance your renovation project, you should really know all the facts. You see, this type of loan sounds great because it lets you borrow based on the after renovation value of your home, helping you to finance your wishlist all in one go. And until recently, these were the only real options for homeowners to borrow in this way.
If you’re looking for the best way to pay for your renovation, there’s every chance that you’re confused about what your options are. In fact, we’ll take a guess that you’ve been told you should look into getting a ‘home improvement loan,’ you’ve spent time reading all about them on Google, and now you have even less clarity on the best way to pay for your project. You see, the definition of a home improvement loan is pretty vague, and that’s where the problem starts.
Home renovation loans are the smartest way for homeowners to finance their entire renovation project, yet most people don’t even know that they exist or how they work. But don’t worry. By the time you are done reading this guide, you’ll know everything there is to know about home renovation loans and why RenoFi loans, for most homeowners, are the best type of renovation loan to finance your home improvement projects.
Also known as an in-law or mother-in-law unit, secondary dwelling unit, granny flat or backyard apartment, ADU’s are on the rise. There has been a significant increase in demand for ways to finance their construction in recent years, especially since changes to California law mean that it is now easier than ever to build one in a single-family zone. In fact, municipalities across the US have relaxed previous restrictions on ADUs, and a number of states are now actively encouraging their development.