Renovation Home Loan will work for Buyers and Sellers
Is there a neighborhood, street, seasoned area, school system, just right for your family, but the house is in need of repairs, upgrading or expansion? In the past, you would have to have additional cash to invest after the closing. A mortgage company named INTERLINe Mortgage Services has rolled out a brand new program geared for those properties in a desirable area that has enough age on it to be dated, in need of a new roof, more square footage, foundation work and or carpet, hardwoods, fresh paint, granite or remodeled kitchen/bath.
Lenders under other loan programs would not allow a close without certain repairs being completed before closing, which does not happen if the Seller cannot afford or will not agree. You can buy a house at a discounted price and close it within 45 days or so. Now, working with the Mortgage Service Company, the upgrades design are estimated with a qualified contractor. The cost to improve the property is added to the loan. At close, improvement money, above the original purchase amount is held in escrow until the work is completed, then released to the contractor. You must qualify for the total sale price plus the improvement amount.
As example: is if the total price is $180,000 less $150,000 paid to the Seller at closing; $30,000 is held in escrow to pay the contractor. An add on at today rates will only increase your mortgage payment by approximately $135 per month. For that small increase, you will have designed the home you want in a neighborhood usually reserved for those with cash, including investors.
Speaking of cash, would you not want to keep your cash instead of possessing dead equity. It could take many years to get your cash back. Also, the interest paid is a write off.
Sellers now can get their homes sold without investing more in their home and still get it sold to a Buyer, who will upgrade their way VIA a renovation loan. It is a program designed for the Woodlands, energy corridor, port inside the loop, Kingwood and other desirable older areas.
It is time to contact a savvy, experienced, Broker/Agent on the SnippSnapsold team to guide, direct, and educate you through the real estate process to a successful close. Sellers will welcome your offer, based on the appraised value prior to the upgrade possibilities. Sellers win with quicker true value closings. Buyers win with the purchase of a seasoned home, saving cash in a seasoned neighborhood.
Call now, inventory is low, cost are rising, 832-877-1040.
Doris Snipp, Associate Broker, CRS, GRI, ABR, CNE, SFR, CHNS Awarded the 2013 5 Star Professional Realtor, Texas, Repeat Award.
Better Homes & Gardens, Gary Greene Real Estate
Email: snipp-snap-sold.com
