How to Finance Repairs, Renovations, Remodeling

With the rising tide of foreclosures on the market, many people are buying homes that need some post-closing repairs and renovations. These extra costs are usually paid from savings and credit cards. As a result, it usually takes a long time to complete these projects, the financing charges are much higher than the rate on the mortgage, and none of it is tax-deductible like mortgage interest is. That doesn't make much sense, and it should be avoided if possible. Turns out, there really is a better way to do it.

We have loan programs available that allow borrowers to combine the purchase (or refinance) of a home with the costs to renovate or remodel, in a single mortgage. The extra funds for the renovation project are escrowed at closing, and any funds remaining in the escrow account after the work is complete are used to pay down the mortgage balance. So whether you're buying a fixer-upper, or you want to renovate the home you already own, this is a great way to go from dream to reality.

As an added bonus, when your renovation project goes through the mortgage process, you have the assurance of knowing that a savvy loan officer and a team of construction lending underwriters will be reviewing the contractor's background, cost estimates, and agreements to make sure they're reasonable and customary. When you go it alone, you're on your own.

For more information or to discuss a scenario, please feel free to call me: James Wheeler, 813-600-3428