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Renovations Are The Way

Before And After Of A Kitchen Model

Reports released May 2018 by Zillow Research show that more than 4 million American homeowners still underwater on their home. That is 9% of all homeowners in the United States who owe more than what their homes are worth. Of the 9% of homeowners experiencing negative equity over 16% owe more than double of what their house is worth.The place I call home, Virginia, specifically Virginia Beach has the largest share to date(16.7%) for homeowners underwater on their homes, which is tops in the nation. It’s easy to point out that since we are a high military dependent area most homeowners are active duty and veterans who used their Veteran Affairs (VA) mortgage loan to purchase with 0% down. With more loan programs aimed at current homeowners with little to nothing of a down payment required, it’s best to use programs such as FHA 203k and HomeStyle Renovation loans to create more equity in a home with the same low down payment requirements.

Working with home buyers, we always present this options to help curb the need move into a house that may become a money pit in 3-5 years with repairs and upgrades when you can do that upfront with a renovation loan. Living in Old Virginia or any historical region you will deal with homes that have great bones that were built in the 50’s, 60’s and 70’s that are eye sores now but with a Renovation loan you can breath life back into these homes and bring them into this century with upgrades to the kitchen, bathrooms, backyard and whatever else you can dream of with this program.

With all great tools, it requires a great plan upfront to take full advantage to put you in the greatest position in the future. If you are going to put money down on a home, why not create the dream house that can become you’re savings plans for future expense such as: children college tuition, business start up, new car or once you sell the home, having enough equity to use the funds for a down payment on your next home to again, create more equity with more square footage in the future.

Renovation loans are the key to ending the negative equity crisis in this nation and allowing for more home buyers to buy a home under budget and still getting what you want out of a new home.

Renovation Loan Programs available

* FHA 203K 3.5% down

* Homestyle Conventional Renovation with 3% and 5%, along with investment property purchase with 15% down

* VA Renovation Loan 0% down including the cost for the renovation work

Realtors, CFPs and potential home buyers, please reach out to the Loan Rangers Lending Team ™ to discuss cost and potential projects you can do to a home of interest or even doing a renovation refinance to build equity into your new home.

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