From ‘Almost Perfect’ to Dream Home with a Renovation Loan!
All around New Orleans – and in many other real estate markets around the U.S. – there’s a shortage of housing inventory.
Whether it’s due entirely to the pandemic or a combination of factors, would-be sellers are sitting and waiting patiently while eager buyers flock to new listings to answer the all-important question – “Is this my dream home?”
Maybe.
Maybe not.
But it could be.
This is where a Gulf Coast Bank renovation loan can really work its magic.
Turn ‘Almost Perfect’ into Ideal
Just as the pandemic has stirred a home buying frenzy due to low interest rates and attractive opportunity to lock in low payments, it’s also spurring a renovation boom.
Some steely-eyed buyers are shying away from building brand-new homes in part due to climbing lumber cost. Lumber costs climbed almost 40% over this past year, according to the National Association of Homebuilders.
Prospective buyers are now seeing the value in finding a home that’s ‘almost perfect,’ one that checks off most of their wish list boxes, including the one that reads ‘renovation-friendly.’
Our Renovation Loan Programs
If you’re looking to renovate an ‘almost perfect’ home – whether you’re buying it or living in it right now – we have two renovation loan products that can help you.
Both offer the ability to finance the purchase (or a refinance) and borrow additional funds to renovate the property and make it your own.
Fannie Mae HomeStyle Renovation Loan
The Fannie Mae, or FNMA, HomeStyle Renovation Loan allows you to:
- Purchase a home and finance the cost of a rehab project ranging from a simple remodel to structural improvements
- Finance repairs, energy updates, landscaping, luxury features, and more
- Low down payment options available for first time homebuyers.
- Use for 2-4-unit primary residences
- Purchase with no minimum repair amount
The HomeStyle Loan Program is the more flexible option when it comes to the types of renovations that are eligible for financing.
FHA 203k Renovation Loan
FHA 203K (FHA Renovation) Loans are ideal for homes needing more significant repairs and renovations.
The FHA 203K Loan allows you to:
- The purchase price and the renovation cost will be included in a single mortgage at the time of purchasing the home
- Qualify with a down payment of as little as 3.5%
- Finance minor cosmetic repairs to major structural home renovations
- Finance qualifying renovations including (but not limited to) structural alternations and reconstruction; reconditioning or replacing plumbing, roofing, gutters, downspouts, floors, and/or floor treatments; and reconstruction after a natural disaster
- Finance as little as $5,000 worth of renovations or rehab on the home (the minimum requirement)
Reach Out to Us to Find Out Which Renovation Loan is Right for You
Both renovation loan options are excellent programs for financing home repairs and renovations. And with each one, you can choose a one-time close option to save money on closing costs.
It’s important, however, to weigh your options closely and understand the differences between each of these loan programs.
Reach Out to a Loan Officer with Your Questions!
At Gulf Coast Bank, we’re here to help you finance the home of your dreams – and secure the loan of your dreams, too. Give one of our mortgage loan officers a call today with your questions on our renovation loan programs and find out which one is right for you.