In this low inventory market buyers can become frustrated that the “perfect” home isn’t out there. The reality in any market is there isn’t such a thing as perfect. Nearly all buyers look at making some changes to their new home.
When those desired changes are significant the trick is to find a home that has the desired features that cannot be changed, even if it requires work on features that can. For example, location or the lot cannot be changed, but a kitchen or bath can be updated, a deck added, or a shop built.
In the past, one of the main challenges to buying this type of home was paying for the improvements. The outlay of cash upfront can be prohibitive, and separate home improvement loans typically come at a much higher interest rate than the purchase loan.
There is great new loan program for buyers to wrap the cost of improvements into the purchase mortgage loan. This way, a buyer can get into a home, accomplish desired improvements after closing, make just one lower-interest mortgage payment, and reserve the cash that would otherwise go to pay for the renovations.
One of our real estate brokers can put you in touch with a mortgage professional who specialize in these so-called “purchase and renovate” loans.
