What specifically are you allowed to do with a renovation loan? The real question is, “What can’t you do?” because there is a lot of flexibility with this type of loan.
There are many different ways to use this program. There are three basic types to look at:
- FHA 203k renovation loan: a great way to get a government-insured property with as little as 3.5% down, including costs of repairs
- Homestyle renovation loan: better if you have a bit more of a down payment
- VA renovation loan: includes special benefits for veterans and disabled veterans
The good thing about renovation loans is their flexibility: you can use it for something that just needs a little bit of work or a home that needs a tremendous amount of work. It doesn’t matter what the condition of the property is currently in, but what the condition will be once you finish making improvements.
Before and After Pictures
Following are some pictures that show the transformation possible with a renovation. You can totally transform the property from something that is an eyesore, to something that you will love to live in. You can also build equity in the home when you buy.
You do not have to worry when taking on a home renovation using a renovation loan: many people think you have to take on a big, stressful project, but the reality is that you can often accomplish renovations and end up with a home you will love while building equity at the same time.
If you have any questions about the specifics of renovation loans, what program might be best for you, or would like some specifics on how a renovation loan can meet your needs, give Pete Thompson a call at (630) 481-7188 or visit www.PeterThompson.team.