Fact or Fiction: My understanding is that renovation loans are only for buyers looking to buy houses in bad shape or properties considered “handyman specials.”
Although it is true that renovation loans can be for properties that are in poor/distressed condition, in today’s market many buyers just want to modernize and update various aspects of their new home to better suit their personal preferences. The National Association of Realtors conducts a home buyer survey each year. The 2014/2015 survey results reflected a very interesting observation about the home buying process. Look at these results:
When first time home buyers were surveyed in the beginning of the home buying process they were asked what they “THOUGHT” was going to be the most difficult part of the process.
- 73% of those surveyed said they thought the difficult part of the process was going to be the mortgage application and approval process. In other words, they thought that getting the actual loan to buy the house was going to be the most difficult part of the process.
When these same first time home buyers were surveyed at the end of the home buying process they were asked what they “FOUND” to be the difficult part of the process.
- 53% of those surveyed said the most difficult part of the process was actually finding the right home for their personal interests.
- Notice, it wasn’t the mortgage process, it was finding the right home.
They noted that the location of the home was what was most important to them. Yes, location, location, location!
- Commuting distance to work or school
- School districts
- Quality of the neighborhood
- Close to friends and family
- Close to shopping, the arts and places of entertainment / enjoyment
So, what does this teach us? Home buyers are looking for the perfect location and not the perfect house. Renovation Lending allows home buyers to select the perfect location and purchase a home that is less than perfect. After closing, they personalize and customize the home to make it perfect for their comfort and enjoyment.
About HomeBridge Financial Services: HomeBridge Financial Services, Inc. is a leader in home mortgages, which are our sole focus. Our team’s experience and expertise in renovation lending enable us to make the loan process fast, easy and understandable for our customers. With a renovation loan from HomeBridge you can turn a house into your DREAM home! Renovation loans are available for purchases and refinances.