27 Aug 2024
By divfundposts

Unlocking the Potential of Cash Only Properties with a Renovation Loan

Mortgage Application

Navigating today’s real estate market can be challenging, especially when dealing with properties listed as “cash-only.” These homes often require extensive repairs or are in poor condition, making them difficult to finance through traditional means. Fortunately, a renovation loan offers a solution, allowing you to finance both the purchase and renovation of these properties with a single loan.

What Are Cash-Only Properties?

Cash-only properties are usually homes that need significant repairs or updates, which disqualifies them from conventional financing options. These properties might be in disrepair, lacking essential features, or have other issues that prevent standard home loans from being available. As a result, buyers are often required to pay in cash, creating a barrier for many potential homeowners.

The Solution: Renovation Loans

Renovation loans provide a practical solution by combining the costs of purchasing a cash-only property and renovating it into one comprehensive loan. This approach simplifies the financing process and removes the need for hard money loans or fix-and-flip financing. Here’s how renovation loans can help you transform cash-only properties into your ideal home:

Key Benefits of Renovation Loans

  1. All-in-One Financing

With a renovation loan, you can cover both the purchase price of the property and the renovation costs in a single loan. This streamlines the financing process and ensures you have the necessary funds to buy and improve the property at the same time.

  1. Customizable Renovations

Renovation loans offer the flexibility to customize the property to your preferences. Whether you want to update the kitchen, add a new bathroom, or overhaul other areas, this financing option allows you to make the changes you envision.

  1. Transforming Distressed Properties

A renovation loan enables you to see the potential in distressed properties and turn them into your dream home. Instead of settling for what’s currently on the market, you can purchase a fixer-upper and tailor it to your exact specifications.

  1. Competitive Edge

In a competitive market, the ability to purchase cash-only properties with a renovation loan can set you apart from other buyers. Many buyers shy away from these properties due to the cash requirement, but with a renovation loan, you can confidently make an offer and secure the property.

Getting Started

Before applying for a renovation loan, assess your financial situation and establish a clear budget for both the purchase and renovation. Partnering with a real estate agent experienced in renovation loans will help you identify suitable properties.

Once you’ve found a property, work with contractors to create a detailed renovation plan and budget. This plan will be essential for securing the loan and ensuring that renovations are completed to your satisfaction and within the required timeframe.

Renovation loans offer a unique opportunity to turn cash-only properties into beautiful, functional homes. By financing both the purchase and renovation costs with a single loan, you can bypass the complexities of hard money loans and fix-and-flip financing while customizing the property to meet your needs. If you’re interested in exploring how a renovation loan can help you purchase and transform a cash-only property, consider reaching out to a knowledgeable lender who can guide you through the process.

23 Oct 2020
By Kevin Gahagan

The Top Questions Everyone Should Ask Before Renovating A Home

Mortgage Tips

The Top Questions Everyone Should Ask Before Renovating A HomeThere are a lot of people who are looking to improve the home in which they live. One of the top ways to do this is to renovate the building; however, it is also important for everyone to make sure they know exactly what they are doing before they get started. There are several questions that everyone should ask before they start a home renovation project.

Is The Home Worth Renovating?

One of the top reasons why people renovate a home is that they think this is going to increase the value of the home. While this is certainly possible, everyone has to run the numbers and make sure they are either going to recoup their investment when they sell the home or that they are going to be in the home for a long time before they sell it. If the home is worth renovating, then it is fine to proceed.

What Is The Budget On The Renovation Project?

Next, it is also important for everyone to know what the budget is one the renovation project. Remember that there are always going to be expenses that are not foreseen, so be sure to include some room at the top in case the contractors come asking for a budget increase. They almost always do.

What Are The Offers On The Home Renovation Project?

Finally, it is also important to collect multiple offers. Talk to designers, contractors, and architects. Collect a few referrals. Then, talk to all of these individuals and see how much money it is going to cost to complete the project. This is one of the top ways that everyone is able to save money on their home renovation projects and make sure they get exactly what they asked for when the project started.

Answer These Questions Before Starting A Home Renovation Project

By planning ahead of time, everyone is able to plan accordingly, making sure they know what they are doing before the project gets started. When homeowners take the time to plan a home renovation project, they increase the chances of the project being a success. This includes not only an aesthetically pleasing project but a wise financial investment as well.

05 May 2020
By Kevin Gahagan

How To Save Big Money On Your Next Home Renovation Project

Mortgage

Every year, homeowners spend billions of dollars renovating their homes. It almost seems expected that homeowners are going to end up going over budget on any project. On the other hand, this doesn’t have to be the case. In reality, there are a few tips and tricks that homeowners can follow to help them save big money on that next home renovation project.

Serve As The General Contractor

Many homeowners hire a general contractor to control the staffing of each individual project. While this might reduce stress levels, it also costs more money. Hiring a general contractor adds an additional middle man to the project who might charge a premium for each individual project.

Homeowners that need to renovate the kitchen, replace the roof, and find a new water heater should hire professionals to handle these individual projects; however, they don’t necessarily need to hire a general contractor. Skipping this step can save money.

Seek Out Multiple Bids On Each Project

Some homeowners don’t like making phone calls and filling out paperwork to collect bids for various projects; however, collecting multiple bids can help homeowners save money. On any given home renovation project, try to collect at least three bids. For larger projects, it is better to collect even more. 

Then, once all the bids are collected, they can be leveraged against each other for a lower price. Homeowners are often surprised by the wide range of bids on a project. Some proposals might even be thousands of dollars apart.

Take Advantage Of Sales

Just as food goes on sale at the grocery store, the materials needed to complete a home renovation project might go on sale from time to time as well. Taking advantage of sales at department stores can be a great way to reduce overhead costs. There might even be cheaper options online. 

Reduce Home Renovation Costs

These are a few of the most important tips for reducing the cost of that next big home renovation project. Home renovation projects don’t have to break the bank! Be sure to collect multiple bids and leverage inventory sales. 

12 Jul 2019
By Kevin Gahagan

4 Times When Laminate Flooring Is Better Than Hardwood

Real Estate

4 Times When Laminate Flooring Is Better Than HardwoodHardwood flooring is considered a premium flooring material. It’s natural, long-lasting, durable and comes in a wide assortment of colors, wood, stains and plank widths. But hardwood flooring isn’t always the best choice. If you’re looking at homes to buy and eliminating the ones with laminate flooring, you could be overlooking some important considerations.

Following are four times when laminate flooring is a better option than hardwood.

1. You Live In A Very Humid Climate

Excess humidity isn’t kind to hardwood floors. Wood is hygroscopic, which means it absorbs moisture from the surroundings. Too much moisture in the air can make hardwood floor planks “cup,” which is when the lateral sides curl up. Wood swells when it gets wet, which can cause displacement of individual planks. Remember too, that you can live in a temperate climate, but if the house is lakeside or within 10 miles from the shoreline, that will increase the humidity levels in the home.

2. You Live In A Very Dry Climate

Hardwood floors don’t respond well to dry climates, either. In times of very low humidity, wood contracts. This can lead to cracking and the development of cracks in between planks. While the gaps can be temporary, if grime gets in there, they can become permanent. Cracking is permanent and needs to be repaired and then sealed. 

3. Your Family Is Hard On Floors

If you have youngsters, a big dog, or other factors, those can be hard on floors. In some cases like this, it can be damaging to hardwood floors, which are expensive to buy and maintain. Laminate flooring is much more accepting of wear and tear, and if you need to replace it, the cost isn’t exorbitant.

4. You Have Special Hobbies

If you have certain activities you engage in, such as painting, fishing, wood carving or other special hobbies, you might want to reconsider the value of laminate flooring. Laminate flooring is a lot easier to clean up when it comes to paint splatters, muddy boots and wood shavings. With laminate flooring, instead of worrying about protecting your hardwood floors, you can focus on enjoying your hobby.

If your real estate agent wants you to see a house with laminate flooring, give it a chance. You might just discover that there are times when laminate flooring is better than hardwood. 

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional.

18 Jun 2019
By Kevin Gahagan

The Benefits Of Adding An In-Law Apartment To A Home

Real Estate

The Benefits Of Adding An In-Law Apartment To A HomeOne renovation that may add value to a home is an in-law apartment. Even if a homeowner does not have any relatives, an in-law apartment makes wonderful guest accommodations. It is possible to rent it when unoccupied to earn some money.

Homeowners who rent out part of a home need to check with their insurance agent to upgrade insurance to accommodate commercial use of a part of the home.

Additionally, a person staying in an in-law apartment, who is not a member of the owner’s household, may need to get renter’s insurance to cover any personal property kept in the in-law apartment.

Renovation Plans

An in-law apartment may be in a basement or attic. Creating one is possible as a home addition, a garage makeover, or as a tiny house in the backyard.

Check the building regulations for the area where the home is. It is wise to get the proper building permits needed for the construction. Work done without permits usually does not add value when reselling because it creates a liability.

Some people make an in-law without having to do major renovations if partitioning the house is possible. It may be possible to separate an area to create an in-law apartment if the house has an extra bedroom with a connected bathroom.

If no existing part of the home is suitable for remodeling, then adding an addition is an option. A better choice for a backyard that usually increases the resale value is building an in-law cottage rather than investing in installing a swimming pool. Some people may prefer having in-law accommodations when compared to the cost of maintaining a swimming pool.

Multiple Uses For An In-Law Apartment

Almost everyone has a use for an in-law apartment. This is why they are attractive to potential home buyers. Children can stay with parents as they become adults. Elderly parents can live with their children. Couples without children can use the room as a home office. Single people can rent out the space to help pay the bills.

Use of the space may change over time, so be sure to think creatively about the space. The value-added for having this space is the privacy it allows. Living together is normally easier when the parties also have some privacy.

Having a private bathroom, a separate entrance, and a kitchenette in the in-law apartment covers all the needs. This allows the space to be self-contained.

Summary

Consider adding an in-law apartment for the convenience, potential improvements in the resale value of the home, and to reduce the expense of supporting family members who live elsewhere and pay rent for an apartment to others.

If adding additional space for in-laws or guests sounds like a good fit for your family, you may want to consider accessing some of your home equity funds to cover the cost of renovation. Be sure to contact your trusted home mortgage professional for current financing options.