As you know, some homebuyers aren’t keen on purchasing “fixer-upper” properties. They may think renovations take too much time, or they are concerned about financing the improvements.

Did you know there are particular mortgage loans, like the FHA 203k Home Improvement loan, explicitly designed to help your clients afford home improvements while building equity? Understanding how these loans work will allow you to offer an important solution for clients who might be struggling to find the perfect home. Continue reading

In a previous postwe discussed what drives a lending decision. Here, we will examine payment ratios/formulas and how they impact the total monthly payment for a home.

Whenever our team works with a client, maybe one of the most frequently asked questions is, “How much will this house cost me every month?” It’s an understandable and necessary question. Continue reading

Interior painting. Bathroom remodels. New Flooring.  

According to the 2020 State of Home Spending report, these were the top three most common home improvement projects participants had completed. It’s not surprising that painting was at the top of the list, as it is one of the most cost-effective and impactful home improvement or renovation projects.  Continue reading

Renovation Loans

Key Takeaways

  • Think creatively: don’t worry about what a listing ‘should’ look like
  • Identify the key advantage of renovating this house, then turn it into an attention-grabbing headline
  • Write an opening statement that gets to the point – a sentence or two should do it
  • Sell emotion with your copy – describe the ‘home’, not just the ‘house’
  • Accentuate the positives and focus on the potential
  • Create urgency with a closing call-to-action

How are renovation listings different?

Listings for homes with perfect foundations, new roofs, gorgeous gardens and all the modern amenities practically write themselves. So, how do you spin sweet poetry about a property that needs some TLC?

The first step is to ditch any preconceived notion you may have about what a property listing should look like. Lately, it seems like most listings are just a quick paragraph listing the property’s features. Yet, if your property is ripe for a renovation mortgage, describing features like, “Roof needs replaced, windows are drafty, paint chipped throughout, and hole in the bathroom floor,” won’t whet anybody’s appetite.

With an attention-grabbing headline and the right descriptive copy, your listing will attract the right audience and will clearly communicate why this property is worth the time and investment to renovate.

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Rental agreements theoretically should be a smooth process: the tenant pays the landlord in exchange for residency and both promise to keep the property in clean, working order for the duration of the agreement. In most cases, that is how everything unfolds and both parties are typically happy.

In other cases, however, things go south quickly and the outcomes are catastrophic. Take for example this 70-year-old rental property in northeast Ohio. The owner of the property had been living in Florida at the time, and came back to check on the home. What he found was completely unanticipated and left him in shock:

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Renovation Loans
Pittsburgh, Pennsylvania (Pop. 302,407) – known for many things, including steel, yellow bridges, Andy Warhol and of course, you can’t mention this city without validating its football team in the same breath. But, what you may not know about ‘The Burgh’ is within its rolling hills lies some of the oldest homes to be found in the United States. Among the largest metros in the country, Pittsburgh is home to the oldest housing stock with 75 percent of homes built prior to 1960. For comparison, the housing market in Austin, Texas is entering its later teenage years with a quarter percentage of its homes built after the year 2000.

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Using the FHA 203k Home Renovation Loan, this buyer in North Benton, Ohio was able to completely renovate the home’s basement, bathrooms, kitchen, garage, AND add in a new deck. They purchased the house for $115,000 and had a budget of $85,000 in renovations. The home recently appraised at $232,500 – giving the buyers $32,500 in equity!

 

 

*Not intended as real estate, accounting or investment advice. Contact your financial representative for more information.