When it comes to the mortgage needs of millennials, regardless of where they live, one of the things our associates consistently hear is that many of these first-time buyers are having a hard time finding a home in a location they want to live that also has the features and design elements they find appealing.
Of course, there are plenty of fixer uppers on the market, but the idea of taking out both a mortgage and a home improvement loan – along with managing the payments to the various contractors they’ll need to hire – is simply too overwhelming for many to even consider. The result is that many first-time buyers simply continue to rent, which means they are also missing out on the financial and personal benefits that can come from home ownership.
What many millennials don’t realize is that a specialized set of mortgages, often referred to as renovation mortgages or “fixer upper mortgages”, could be the answer.
These mortgages can be used for a variety of homes and their renovation needs. Sometimes the homes in question simply need some updating, such as renovating a 30-year old pink tiled bathroom into something more modern, or upgrading the windows. In other circumstances, the loans can be used for large scale home improvements, including kitchen remodels, major roof repairs, adding a deck or even installing a new pool.
With renovation mortgages, the loan amount is based on the projected value of the property after the repairs are completed and in many instances, these loans create almost instant equity for the buyer because the improvements often add exponential value to the home.
So why aren’t more mortgage lenders talking to home buyers about these loans?
One of the reasons you may not have heard of renovation mortgages before is that these loans do take some extra effort for the mortgage lender to complete, so many simply don’t offer them and don’t mention them to potential buyers.
HomeBridge however, has been recognized as one of the nationwide experts in these renovation lending and has an in house team, the HomeBridge Renovation Concierge Service, that manages the entire process, so all of the payments to contractors and other details stay on track.
This is just one of the many ways HomeBridge aims to make the home buying process as straightforward and easy for everyone involved.
Interested in finding out more about financing a home by using a renovation mortgage?
You can find a list of our local branches or contact our national lending online center by clicking here.