Remodeling Home Loans

If you are buying a "fixer-upper" you probably have a laundry list of projects you want to tackle.  Even if the house you are buying just needs a modest amount of work, you might be wondering how you will pay for it all.

The answer is a remodeling loan designed for just this scenario.  At Mason-McDuffie Mortgage we have an entire team of experts dedicated to Renovation Home Loans.  These are programs that combine a remodeling loan and home purchase (or refinance) loan in one.  These types of home loans can provide much needed funding, plus a little extra.

These home improvement loans are a benefit for remodelers because the mortgage loan amount is based on the value of the house after the improvements.  For example, if you are buying a $200,000 home and you plan to spend another $50,000 redoing the kitchen, bathrooms and electrical wiring, then the loan would be based on the increased value of $250,000.

Another benefit to this type of financing is that the remodeling costs are spread over the entire loan term.  This will result in lower monthly payments, which can help lessen the financial blow of buying a house that needs improvement. 

These types of loans also help people buy home that are in good neighborhoods, but need improvement.  Otherwise, many buyers would walk past such a house, considering only the perceived hassle of trying to buy a house and remodel it at the same time.

Another benefit to this type of financing is that it allows you to get your dream house in shape more quickly.  Instead of waiting five years to remodel the worn kitchen, replace the leaking roof or redo the plumbing, you can do it right away.

And there is an added bonus.  The interest you pay on the cost of the improvements might be tax deductible.  Consult with your accountant for further details.