Are you an avid HGTV watcher? Inspired by shows like Fixer Upper and Flip or Flop? Is it your dream to buy a home that needs renovation, but aren’t sure you have the money for it? Well, did you know that it is possible to received secured short term loans for renovation financing?
The concept of renovation financing may remind you of deals between commercial real estate investing and investment property mortgage lenders, but renovation financing has become a major draw for new homeowners. 32% of all people in the market for a new home are buying for the first time, and more often than not there are aspects of houses for sale that really could use a facelift. Over 59% of people feel like they don’t understand mortgage details well at all. Hopefully you will find the three simple facts in this article helpful in understanding the benefits of renovation financing!
1. Renovation financing becomes a part of your mortgage. By receiving a combined loan for your mortgage and the renovations you typically will experience lower interest rates. Also, it has been shown that you have greater flexibility in the time you are required to pay the loan back.
2. You don’t have to be wealthy to tackle home improvement! Renovation lending gives you the freedom to take on as big of a project as you desire. Through these loans you are able to lift the burden of these major financial investments and allow the process to be more manageable. Home renovation may seem like a hobby for the rich in the past, but by taking out one of these loans the sky really is the limit.
3. Another financial benefit is tax deductions. The interest for both you mortgage and the renovations will be tax deductible, so it is truly the best way to take on this type of project.
Don’t let money hold you back! Renovation financing is really helping many new homeowners buy their dream homes, and do so in a feasible way. You could be on your way to restoring an old schoolhouse as your home or renovating a beautiful Victorian in a downtown area, so don’t hesitate any longer!