Have you found your dream home, but it’s not in the best condition? Spotted a great deal on a foreclosure, but it’s going to need some work? According to Cunningham & Company Mortgage Bankers, that’s where the “Rehab loan” comes in. These unique mortgages, sometimes called renovation loans, bundle the purchase price of a home with the money needed for repairs or renovation. This is an incredible mortgage program for buyers who are looking to buy a home with huge equity potential, without having to come up with a large amount of their own money after closing to make improvements and upgrades to the home.
The process of the Rehab loan is fairly simple. As with any loan, you’ll be required to provide documentation of your income and assets and your credit profile. The money needed to make the down payment will be determined after you find your property. Once you find your dream home, you will need to meet with a contractor to get the full estimate of the cost of the work to be done. Loans are based on the improved value of the home. Renovations can be structural or cosmetic; you can even trade out appliances.
There is only one closing for this loan, meaning your payments are not going to change later, and you won’t have to pay closing costs multiple times during the process. At closing, an Escrow account will be established to cover the money needed to pay the contractors.
“Our conventional renovation loan is a great product,” said Teresa Parker, Loan Officer at Cunningham & Company. “I have a first-time homebuying couple purchasing their home using this loan now and closing next week. They truly did find their “dream” home: it met all their requirements, but it was not in good condition and needed lots of work and some TLC. The home will be amazing once the renovation work is done, and it will be customized to their exact specifications. They are very excited!”
With a Rehab loan, you’re able to finance the home and renovations – all in one transaction. It’s a great option for investors, growing families, empty-nesters, or even first-time home buyers.
Ask your hometown Cunningham & Company Loan Officer, Teresa Parker, NMLS 453354, for details on how a Rehab loan can help you turn that fixer-upper into a great home. Contact her today at 919-697-2598 or [email protected].
Real Estate Experts and Cunningham & Company Mortgage Bankers, NMLS 2024, have partnered together to provide homebuyers with a smooth and seamless homebuying experience, from walking through that first potential home to the completion of closing. You will be treated to a stress-free, delightful homebuying process when you work with the best real estate team in the Triangle! Contact us today at 919-535-4874 or [email protected]. Visit us online at realestateexperts.net.