Renovating your next property might feel like a distant dream if you're worried about the upfront costs. But don't give up! There are ways to fund those renovations without feeling like you're emptying your pockets. Let's dive into the best home improvement loans to renovate your next property and for turning that fixer-upper into your dream space without breaking the bank.
FHA 203K
First up, the FHA203K loan. Picture this: you find a place with incredible potential but in need of some serious TLC. With this gem of a loan, you can roll your renovation costs right into your mortgage for a primary residence. The catch? You've got to live there. The down payment is sweet— just 3.5% if your score plays nice at 580 or above. If not, it's a tad higher at 10%. But still, not too shabby!
HOMESTYLE LOAN
Now, say you stumble upon an investment property screaming for a makeover. Enter the Homestyle loan, a conventional option letting you bundle renovation costs into your mortgage. Unlike the FHA203K loan, there is no need to occupy the place, which is a plus for an investment property. Your down payment can slide down to 5%, but honestly, it usually hovers higher around the 20% mark. A score of roughly 660 or above usually opens this door wide for you.
HARD MONEY LENDERS
But wait, there's more! Ever heard of Hard Money Lenders? They're like the sprinters of loans—short-term investor loans zooming in with higher interest rates. They're not for the faint-hearted, but they dish out cash specifically for renovations, often in scheduled draws or reimbursements.
PRIVATE MONEY
Private Money—it’s the secret sauce. This one's a personal favorite for funding flips or rentals. Hold tight because we'll be diving into this at our upcoming FREE workshop. Trust us, it's worth it. And guess what? It's free! Link's in our bio—reserve your front-row seat to financing wizardry.
Now, here's the golden rule: do your homework. Research, ask a lender, and understand the terms of your loan like it's your favorite playlist. Talk to mortgage lending pros—get their take, figure out your limits, and know what you're diving into before you ink that dotted line.
You can also join us at the workshop and let's crack the code on funding your real estate dream without hauling bags of cash to the closing table. We'll make financing your next big move feel like a piece of cake!
Renovations can be daunting, but with the right funding, they're your ticket to transforming spaces and building your real estate empire. See you at the workshop!
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