Can’t Find a House that Fits Your Needs? Finance a Fixer Upper

In today's market, trying to find a home that fits your wants and needs may feel like trying to find a needle in a haystack.

Whether the kitchen is outdated, the electricity needs updating, the bathrooms are too small, or the floor plan isn't open, many home buyers can't seem to find a home they love. It's an issue that renovation loan specialist, Chris Busching, is very familiar with.

"A lot of times millennials are finding that they can't afford the houses that they want to live in, and they'll say, 'I'll look again next year'. But unless they're getting a raise at work or acquired some funds, it's likely that they still won't be able to afford a home that they desire and will continue to rent," said Chris, who has over two decades of experience in the mortgage industry.

So why not purchase a fixer-upper?

"I like to say that it's difficult to find the perfect home, but it's easy to make every home perfect."

With limited cash on hand, many buyers feel as if they can't purchase the home and make improvements at the same time. With a renovation loan - you can get the money you need to buy the home and make any needed or wanted renovations, all in one loan. 

"It's the only loan program out there where the lender will use the future value of the property to determine how much money we can lend you," says Chris. "Repairs can be as simple as replacing countertops with granite, or as much as, tearing a home down to its foundation and building it up again."

While renovating might sound like a lot of work, it could be the solution needed for many buyers struggling to find a home that fits their needs. While the process takes longer, the renovations allow you to create that space.

Why does a renovation loan make sense in today's market?

With a shortage of homes for sale, it's much harder to find a home in your desired location. "A renovation loan can help open the door to a specific area because other buyers are unwilling to take on a fixer-upper," Chris says. "If you find a home in an area that you like, and you like the bones of the house, we can fix the little things."

While limited homes on the market may be discouraging, there is good news on the horizon.

"Now that the government moratorium on rent and foreclosures has been lifted, we expect to see more and more vacant homes due to foreclosures. Often, these vacant or foreclosed houses are great opportunities for a renovation loan because you have the potential to earn some 'sweat equity' along the way," Chris says.

How?

Some distressed or vacant homes are discounted more than the cost of repairs. "This means that if we look at the appraised values of the property after renovation and compare them to the amount borrowed, it was appraised for more than what was borrowed," Chris said.

Not ready for a true fixer-upper? That's ok too. With a renovation loan, you can borrow as little as $5,000 to make your repairs, according to Chris.

Why use us for your renovation loan?

  • You'll have guidance throughout the entire process. "Not only will you have the guidance and expertise of your loan officer throughout the entire process, but you'll also have access to our renovation department. The renovation department is here to hold your hand from start to finish - and finish isn't when the loan closes - it's when all the renovation work is completed," said Chris.
  • We'll make sure your work is completed on time. "Sometimes the hardest part of a renovation is dealing with your contractor. We're here to help hold your contractor accountable, and make sure that all renovations are moving along on time, so that you can move in on schedule," said Chris.
Chris Busching (NMLS #609816) is the National Renovation Manager in Virginia Beach for TowneBank Mortgage (NMLS #512138). He can be reached via phone at 757-285-7336 or through email at Chris.Busching@townebankmortgage.com
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