Are you thinking about buying a fixer-upper, but do not have the money in your account to fund this project? Well, do not worry because you can get a purchase plus improvements mortgage to make this dream come true.
To give you a better understanding of what this loan offers, your local Kingwood mortgage lender has explained everything you need to know.
What Is A Purchase Plus Improvements Mortgage?
A purchase plus improvements mortgage also referred to as a renovation loan, is specifically for people who are looking to buy a home that needs to be renovated. With this loan, you can immediately begin making renovations on the house and have the costs of these repairs compiled into one mortgage.
If approved, you can borrow up to a level that makes sense for that neighborhood. Let me explain…, if the neighborhood values are around $300,000 and let’s say you are able to buy a home at $200,000 in that neighborhood, then you could borrow 95% of the subject to the value of the home after it has been renovated. That means $270,000. That would be $200k for the home and $70k for the improvements.
How To Get Started?
You first want to meet with your local Kingwood mortgage lender to get pre-approved for this mortgage. In doing so, your lender will review your financial history and run a credit check on you to determine how much you will be able to borrow. Once you have this value, you can begin shopping for that fixer-upper.
When you find a home that you are interested in, make sure the cost of the renovations and the home’s listing price is not more than your loan approval value. If it falls within your budget, you can make an offer.
Once your offer on the home has been approved, and you have the cost of renovations calculated, your lender will incorporate all this information into your purchase plus home renovation mortgage.
When your loan is completed on your new property you can immediately begin making repairs. Once the repairs are finished, any funds left over will be used to pay down the balance of the new mortgage.
For more information on the benefits of a purchase plus Home Renovation mortgage, or to get started on your Kingwood mortgage application today, please contact the Mortgage Solutions LP team at 281-348-9899.