Have you ever found your dream home, BUT, it needs a little TLC? Maybe you love the layout, but the whole house has carpet and EEK! You hate carpets! You don’t want to walk away from the house but you’re wondering if you can afford an expensive hardwood installation after using all your cash for the down payment.
Before you walk away from your dream home, you might want to consider your options.
First of all, you’re not alone! This is a very common situation, especially in hot markets when inventory might be low and people are going into multiple offers. What we’re finding, especially now, is that people are often paying above asking. And due to low supply, they might be buying a home that needs some improvement. This type of situation will often leave a home buyer with little money left-over to do upgrades, especially if they use all their cash for the down payment.
So, if you find yourself in this situation, don’t despair!
The good news is that there is a great product out there called Purchase Plus Improvement Mortgage that is available to home buyers. If you’re planning on buying a home and you have enough for a down payment, but you don’t have enough cash leftover for improvements, you can just add the cost of your renovations to your mortgage. If you want to update the appliances, put new flooring in, paint the walls, or whatever have you, the lender can actually help you finance that improvement. And the best part is that it doesn’t cost you anything extra in interest rates and fees. You still get a great mortgage rate and product and you get to create the home you want.
If you’re planning on buying a home and have questions about renovations, reach out to me. I can offer some advice and can help you find the right fit for you.