One of the biggest issues for buyers looking for new homes in the Chicago area, has been the shortage of inventory for quality properties. Homes that show well and are priced right have been selling quickly all year long. But there are a lot of other properties that may be in good neighborhoods, that are sitting on the market a lot longer. These are the properties that might have some issues. Sometimes it is deferred maintenance, sometimes the home is just outdated and doesn’t show well. Either way, most borrowers are looking for homes that are in move in condition, and these homes don’t even show up on their radar. But these homes can be a great opportunity for buyers with imagination. These homes are neglected because they don’t have the amenities today’s buyers are looking for, but with a renovation loan, you can fix and improve a home, changing it into the home you want it to be.
We recently had a training event for Realtors, showing them how to work with renovation loans, and increase the amount of homes they can show to their clients. Many Realtors aren’t aware of how renovation loans work, or have heard horror stories about how hard these loans are to work with. The truth is, renovation loans are a great option for many buyers, and they just need to understand how the process works, and what they need to do to smoothly close these transactions. We covered the basics of how renovation loans work, and what they can do to help their buyers find the property in the location that works best for them, and use renovation financing to make it the right home. We covered the details of the FHA 203k, both the streamline and full, the conventional Fannie Mae Homestyle Renovation loan as well as the VA renovation loan for qualified veterans. We showed the advantages and disadvantages of each, and what they could do to help make the process run smoothly. Realtors have a big role in a home sale, and knowing about how these loans work gives them one more option that will help them with their business.
If you are looking for a good Realtor who understands how renovation financing works, and can help you through the process, let me know and I can get you in touch with a professional who serves your area. If you are looking to buy and renovate a home, give me a call and we can go over the process in detail and help you to find the best way to buy a home and improve it, in a way that will best meet your specific needs.
Here are some pictures from our recent training event. If you have any questions at all on renovation loans, hive me a call.