6 Benefits of Using a Renovation Loan

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Many people choose renovation purchase or refinance loans for their home finance needs. While every home need is different, let’s go over 6 distinct reasons why someone may finance with a renovation loan.

1. The Opportunity to Create the Home of Your Dreams

The current housing market is highly competitive right now, even without the typical busyness that occurs in early Spring. With limited inventory and high listing prices, using one of our Renovation loan options allows you to purchase a home that needs repairs with the financing to do so. When you utilize a renovation loan, it can help you increase your pool of possible homes and includes the costs of your desired customizations in one loan.

2. Improve Your Quality of Life

Whether it’s a fixer upper you’ve found on the market or a home you’ve loved for decades, there may be more issues than just peeling paint. Older homes often have problems such as poor insulation, faulty windows, or outdated appliances. Using a renovation loan can help you purchase or refinance with the cost of upgrades included. Safer kitchen appliances and energy-efficient windows can make your time at home more functional and enjoyable.

3. Stay Connected to Your Neighborhood for Longer

A great neighborhood can be irreplaceable. When using a renovation loan, you can make additions or downsize without leaving your beloved neighbors and location. A Renovation loan allows you to refinance and include of the funds necessary for renovation all in one finance loan.

4. Increase Your Home’s Selling Value

The renovations you’ve completed will reflect in its selling value. Making renovations before you put your home on the market can increase the value of the property. Upgrades that have the greatest return on investment can offset the cost you spent renovating if your improvements have high market appeal.

5. Save on the Cost (and Stress) of Moving

A renovation of a home you love can save you money and stress. Moving costs can add up, especially if you’re moving out of a neighborhood to another across a city or state. On top of it, you may have to worry about buying a new home while selling your existing one.

6. Flexible Financing Options

When you use a renovation loan or refinance with Homestead Funding, our diverse programs and simplified process make it easy and stress-free. Our programs depend on the scope and type of renovation project, so it’s best to reach out to us and speak to a Loan Originator about which option is best for you.